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Relax! Just tackle things little by little:
“I can’t read the thing and do it at the same time.” – first of all just go slower so that you can read and play. If you must look at your hands, that means it’s a good time to begin learning how to play without looking at both the fretboard and the strumming hand. Today’s challenge is a good one to start on, only 2 strings and they are adjacent.
Also try to remember what you are supposed to do so looking at the TAB closely is no longer necessary. This might not all happen for you the first time through, don’t worry we’ll be practicing these kind of things a lot and you’ll improve.
“The other questions is are we supposed to be recording each day of this challenge for the next time or just the completed song?” – the recordings are for you, I for one have never recorded myself for this particular challenge but you can if you want to. There aren’t rules for this. On the Wagon Wheel benchmark I’ve only recorded the Thurs and Friday sessions. That was my choice but by all means, record whenever you like!