Your first problem is usually that you can't speak clearly and fluently, so you should try to improve your speaking. Your second problem is usually a listening problem.
You either (a) know the vocabulary but you can't recognise it or (b) you don't know the vocabulary.
(a) To practice recognising the words, you should
- Select an English audio or video clip with script or subtitles.
- Listen to the clip and write down what you hear. Listen a few times, and if it's too fast, slow it down (most media players can).
- Check your writing with the script or subtitles.
- Listen again and learn the pronunciation of the words that you couldn't hear at first.
(b) For the new vocabulary you should then
- Try to guess the meaning from the story ("context clue") first. It helps if you know what the story is about.
- Use a dictionary.
- Write down or mark the new words with an example sentence for later review.
Start with easy listening at for example ESL Cyber Listening Lab. When you're better, you can practice your listening with e.g. songs, films and news.
