Reed is learning from his mentor, KD, who does exactly the same thing, especially in the 2nd half when the Rockets have a lead.
I think Reed's two major areas to improve on offense are: 1. Decisiveness. He needs to process faster. It should get better with more experience. 2. He doesn't have much confidence in his ball handling. Maybe he's not very good at it so he shouldn't be confident about it. He backs off whenever he feels insecure about keeping the ball. Handling is something he needs to work really hard on in order to be a good NBA guard.