Blogging: Keywords

One day, I hope to be on the other end of the spectrum. I would hope that one day I am a successful internet money maker and I am finding the "little" people like I am now to help them on their journey, but until then this little blog will be dedicated to the search. The search to find ways to make money on the internet.
What have I found out about blogging? Well, I found out that I don't know anything! I have been doing research in the area of blogging and I have to tell you, I am overwhelmed. I have read about SEO & keywords. I've researched paid to post sites and blogdatabases. I'm learning quite a bit, but I'm still unsure as to how to put it into action. Well let me share with you a little of what I've learned so far.
'Sigh'...here goes. Let's talk about keywords (someone please correct me if I'm wrong). Keywords are vital it seems, if you want to direct traffic to your site. But the key is finding the right keywords. The keywords or keyword phrases that you choose will determine the people that find your site.
Once you have a blog or post in mind, go to this Wordtracker site. Type a keyword into the search bar and click hit me. You will find your keyword in different phrases. I am told that you do not want to select a keyword phrase that has a Wordtracker score of less than 40.
Once you have your keyword phrase you go to google. Type the exact phrase into the search engine and see how many hits you generate. This will be your actual competition. Divide the number of hits generated by the score on wordtracker. If your ratio is 1000:1 or less, this is a good keyword phrase to use.
Disperse it throughout your post and see what happens. Between the sites I've researched, this is what I've learned. I hope this works for you. Try it out and let me know how it does. I'm not an expert (yet), but I'll keep posting things I learn as time goes on for all you who are just starting their journey, just like me.