Get out and play. I watched a guy for 5yrs sit and watch in my local acoustic club. Once he retired he learnt to play and now takes a turn every week. His confidence has gone up and his technique has improved by performing.

I started by playing washboard in a local band - that got me over the stage fright and my guitar playing i started in a local bluegrass session and a local folk club. I have never looked back. The "Flying Hours" (Playing out or with others) are as important as the theory/ chords/ inversions etc. I may not be the best technical guitarist in the world but I can hear a melody and play it first/2nd time, I can read a guitar players hands in split seconds. That comes of playing out and a neccessity of survival.

Good luck, it is well worth the hard work.