Physical means 'bodily' or 'material'. Psychic means 'mental' or 'spiritual'.
'Physical' refers to the objective side of the universe. We presume that the universe will be there even if we're not looking at it, and that it exists as a reality separate from our personal experience.
'Psychic' refers to the subjective side of the universe. Although we believe in the objective, all we can experience is our perception of that reality.
'Physical' and 'psychic' are two sides of the same coin. ('Physical' is the 'hardware' and 'psychic' is the software.) If we use only one of the two exclusively, we are confusing the coin with only one side of it.
The world is; with feeble attempts at categorization and rationalization we cannot comprehend the whole physical psychic beauty of it.