I personally love psychological horror, and it's probably my favorite movie genre in general. I love the way the story twists your mind around, so by the end of it, you're so immersed and frightened that you can't help but watch.
Unfortunately, we don't get those movies anymore. Instead, we get Ouija.
I feel like the main problem with horror movies is that the writers rely too much on jump scares to make people frightened. A good jump scare is great, but it has to be at the right moment. A common one I see is that the music is elevating, the camera shots go slanted and focus on a girl reaching into her dark closet. All of a sudden, a killer jumps out and... oh wait, that's not a killer, it's her brother. Great, now all of that momentum is ruined, and the suspense killed. Yeah, it scares the audience for half a second, but it absolutely wrecks any sort of immersion the writers are trying to accomplish. It's not that a fake scare is bad in itself, it's when everything leads to that scare. There have been plenty of big scares that turn out to be friends coming into the camera angle, but it's because the music didn't lead up to it, the momentum is carried on through, and the audience is even closer to the edge of their seat. The viewers know that the friend wasn't the big scare, so there's still something to lead up to.
Horror movies today like to cram those fake scares with the music queue and everything, thinking it'll up the scare factor. Instead, it ruins everything. By the time the real climax rolls around, everyone is exhausted and not as into the movie as they could be. If you're going to lead up to a jump scare, it has to be of something you're supposed to be afraid of. Just take a look at Insidious and Sinister. Both of these movies had a lot of scares, but they were of stuff that the audience was supposed to be scared of. The scares weren't fake, and the movies themselves were decently frightening because of it.
I don't watch horror movies anymore without reading a few reviews nowadays. I think The Purge: Anarchy was the tipping point with that, as I love, love, LOVE the concept, as it leaves a lot of room to explore human morality and how far someone will go to save themselves, but the movie itself is just utter crap. I will never recommend it, and whatever scares this was supposed to have, it didn't deliver. And because of it, I have to see if a horror movie is decent before I'll watch it.