Acharya Prashant explains that self-knowledge involves observing desires and fears as they arise, rather than being paralyzed by them. He notes that fear is deeply rooted in memory; without memory, fear cannot exist. When fear appears, it often tries to paralyze the individual's consciousness, triggering ancient biological 'fight or flight' responses where logic and awareness are suppressed. To overcome this, one must maintain consciousness and use memory, logic, and intellect to identify the fear's origin and its repetitive nature. By recognizing that the current fear is merely a repetition of past events that have already been survived, its power is diminished.