So there are some comments here as to whether this is psychosis or not....I think it is but just mild. The spells witchcraft etc probably isn't psychotic as lots of people believe in that. What worries me is believing you are a Fay. Unless this is normal in your culture then it probably is psychotic. I should say that one of the major limiters for psychiatric diagnosis is impairment. If you're still going to work and hanging out with friends then I agree that this is sparkle. If you're obsessively sitting in your bedroom working spells and forgetting to eat then it might be impairment. Just keep an eye on it to make sure it doesn't progress to impairment.