In the gym I am extremely stiff and tense the practicing. are there exercises or some secret that I dont know about to correct this issue? or is this something that will improve with time?
You're obviously aware of this issue and think about it which probably makes it worse. Try and relax and enjoy yourself. When you become confident in your abilities and relax you'll be ok, just takes time.
It's a natural thing. I think all newbies start out stiff. No specific exercises I know of that will eliminate that. Just practice. Lots of shadow boxing, more sparring to get used to the natural movements, and like Ipay said, make a conscious effort to relax. Apart from that, just know that in time when the movements start coming naturally, you'll loosen up. Another possible reason is that newbies tend to tense up too much in anticipation of getting hit. If this is your problem, practice a lot of defensive drills, especially with blocking and parrying. Once you get comfortable with your defense, you tend to relax a little more. Good luck and keep practicing.
Oh and I totally forgot to mention, something that helped me overcome tension and help me relax. Sounds cheesy, but very effective - VISUALIZATION. Yeah, before you go to the gym, spend 10 mins or so relaxed with your eyes closed visualizing a sparring session in your mind, and picturing all the things you want to do while being completely loose and relaxed. Spend another minute or two before you get into the ring using the same visualization to sort of remind yourself what you want to get out of it. I know this sounds like typical advice you get from people who aren't even athletes, but trust me - it's for real and it works. Another tip: listen to the music in the gym and just try to enjoy the sparring session. Lastly, I hope your coach isn't putting you in with guys who are going too hard on a newbie. That never helps. Newbies need to start out with guys with similar ability, or more experienced guys who know how to ease up a little. Keep us posted on your progress.
You might want to spar with just defense, then you can let the other guy beat on you, and you will stop being scared of getting hit.
You either have to force yourself to relax, which most people can't do, or build your experience/confidence until you're naturally relaxed. Being stiff is completely normal for beginners and even intermediate fighters. You're more focused on the process than the outcome at this point (which is normal and necessary). When you're more experienced, you tend to think on the strategic level rather than the tactical. "If you think only of catching, blocking, striking, or tying up the enemy, you will not be able to actually kill him." Miyamoto Musashi Read the Book of Five Rings and MCDP-1 Warfighting as soon as you can. I think that every coach and boxer should have a solid understanding of those two books.
I want to thank everyone for answering my post. you have no idea how much it helped. I had my first sparring session monday. it was a horrible situation. I was doing a whole check list thing and my opponent was punching me all in my face. I read alot of post saying other people first time sparring was bad. so im not upset at that. I do know I am not confident in my defence. I rather lean back or duck then put my hands up.