I don't know, the whole 'Just do it' thing may be her last alternative for treatment. It may be that there really isn't anything else left to try, thus the suggestion may be the last option.
I know from personal experience that there are individuals who I would do things with that I wouldn't do with anyone else (sex and other things). I think with the right person sex would be enjoyable for you and all of your distrust and 'fear' of the act may actually all but vanish in the arms of the right person (male or female).
Some phobias are treated with being introduced to the thing you fear - acclimatized to that which you fear. Thus patients with fear of flying are taken to airports, then get to sit in an airplane with the engine off, then later get to ride down the runway (no taking off) then eventually build up to taking a flight or two.
Of course with sex there is none of these convenient partway trips, and honestly do you want to have your therapist sitting there 'holding your hand' as you have sex with someone else? :tongue:
Therapists are not saints, nor do they possess god-like abilities to 'cure' you. They can only do so much, ultimately it is up to the patient to do things - try thing and see if they work.
In your case you do not have so much as a phobia of sex, but have been traumatized - abused - tortured with/about sex.
Abuse/torture victims don't ever 'get over' the torture/abuse. Sure we can learn how to deal with the attending emotions that stem from abuse, but we never forget the abuse and we have the emotional memories to 'deal with'. Those emotional memories are rooted in the animal hind-brain. They do not respond to intellectual debate nor a lot of the rationalization that we have with our fore-brain - our 'civilized' thoughts.
Trust is going to be a huge deal for you, you are going to need to trust your partner to not hurt you. People who have had their trust betrayed (such as in cases of abuse) tend to be very stingy with who and how much trust they give. In the arms of the right person who instills more trust than others, I suspect that sex would cease to be a traumatic event for you but would be indeed a wonderful experience. Perhaps this is what your therapist is aiming for?
IF the therapist isn't working at this from the abuse angle, then I fear that working on the lack of desire for sex or fear of sex ain't gonna help. You were abused - the mindset of the abused needs to be dealt with.
I have been in an out of therapy for decades dealing with abuse and how it impacts my day to day life. I have huge trust issues - I trust most people about as far as I can throw them. No rethink that, I can throw people pretty far
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I have had several therapists, a few I did not like - we had 'personality conflicts' that lead to professional issues, thus therapy with them was not as effective as it could be.
I got the most bang for my buck with therapists who I liked than those I couldn't trust fully or be as open and honest with due to personality conflicts.
IF you feel that her stance on LGBT is one of 'questionable tolerance' then find one who works with LGBT and doesn't have issues or 'past issues'. Find one who you like. You are allowed to shop around.
Understand that a therapist is in basic terms a 'professional friend'. They are paid to listen and offer suggestions based on what you tell them. Granted I doubt you will go out and paint the town red with your therapist, but you will require a good deal of trust as you would trust a close friend in order for therapy to work.
For people with trust issues, this means you can be seeing a lot of professional friends before you find one that you can really connect with and feel safe enough with in order to actually work on your issues.