Sorry, looks like I did miss the questions:
1. Do you care about keyword density for long tail keywords? Like I naturally use it in my article and keep it under 3%, so does it matter in long tail keywords with 5-8 words... will Google penalize my blog post for keyword stuffing?
I don't KW stuff, it is not natural and can hurt you should you get caught. If it flows naturally out or my mouth, or from my keyboard, I write it. I don't think I have looked at KW density real closely in a while but I know it is never anywhere near 3%. That would not be natural for me the way I communicate.
2. Do you use multiple long tail keywords in your article? I use 2-3 long tail keywords tin a 1000 word long post, with one main keyword that I target and 2 secondary keywords, is it okay?
Almost always... in fact, always. I'll have what I would consider the base KW and have a handful of long tails that would be a natural fit for the article and slip them in. To be honest, I'm not thinking about making sure that I get in the keyword extremely prominently, I do want it in there, and I want some long tail variations but I want the article to flow and be natural as that will keep the visitor on the site longer giving me more of a chance to sell them something. The content, if written naturally and on point, will rank for a lot of KWs and KW variations.
3. I heard that many people get there article ranked on the basis of their content only, is it true?
Beat me what they think works... I rarely pay attention to what others are saying or doing in this kind of thing. I know that a lot of related quality content, published on a regular basis, with a little kick here and there from backlinks will get noticed by google. Once noticed it can end up ranking and usually does with the approach I use.
4. Many long post on some authority site rank for some long tail keywords also. During my research I found out that an article with 3500+ words is ranked for main keyword with 10k+ monthly searches and for some long tail keywords also. So, my question is should I target that keyword?
I have a thread on BHW about how I do KW research, that will give you an idea about what I think is worth targeting.
Will it matter to Google in comparison to that 3500+ article? Should I build backlinks for that long tail keyword also to improve my chances?
It is pretty rare that I do not build backlinks to my pages after a while... in fact I build backlinks to images on my pages as well.
5. I only like to target long tail for now so that I can build some decent traffic. So, should I go with 500-2000 searches per month and write 100-200 articles? or should I target all kind of keywords?
Again, you want to read that thread I have on KW research as that will help you there as to my thinking on that.
Here's a link to that thread on KW research that I shared a bit back -
http://www.blackhatworld.com/blackh...d-research-when-building-authority-sites.html