I've had this nightmare where something is watching me and taking over my body..i can feel every moment. i'm scared to sleep. recurring nightmare and suffer from anxiety.

Seek Help! : Sleep is essential to health! Night terrors are very scary but they are not real. Anxiety has many causes beyond the scope of this answer but the treatment is probably going to be a combination of medications with counseling. You may also have a sleep disorder and this may contributing to your syndrome. You should seek out professional help with your PCP. You don't need to live like this!

Nightmares and anxie: I strongly recommend EMDR as the best therapy, and the fastest, to resolve trauma. For nightmares I teach my class No More Nightmares and the skill of Planned Dream Intervention. This teaches your sleeping brain that there is no such thing ass a bad dream so you sleep peacefully through your dreams and feel refreshed in the morning

Therapy?: Have you yet tried any form of psychotherapy? Typically, the optimal combination of things to treat emotional issues such as anxiety or depression is medication (which, on your best day, is supposed to take the edge off symptoms) but the real gruntwork takes place in psychotherapist's consulting room. Psychoanalysts and psychodynamic therapists work effectively with dreams, by the way.

Sound a little like: PTSD. Have you visited your local psychologist? We specialize in dealing with anxiety, even if it presents in the dream state. There are lots of possible causes ranging from functional ones (bad experiences in history) to organic ones (physical causes). Start with your GP and let him/her point you to some resources that can begin to unravel this puzzle.

Psychotherapy: Meeting with a psychiatrist and/or a psychologist can help you to better understand the nature of your nightmare and why it persists , You can also address the sources of your anxiety and see if the nightmares are somehow related. Whatever is bothering you can be figured out with help, and you can develop strategies to deal with these issues.

Recurring Nightmare : It is very important to get psychotherapy treatment from a Clinical Psychologist to stop the recurring nightmares. Medication can be helpful.