How to choose a right keyword

Hi everyone
I am green at SEO. You know, the most important to drive traffic of your webiste is to do keyword research, right？ I feel confused about keyword research.
Does anyone give me some advice or some specific steps to do keyword researsh to make keyword more valuable??

Thanks.

I do it this way.

1. Sign up for a CPA Network.
2. Look at the offers.
3. Try to extract keyword from the offer website.
4. Search the keyword in the Google keyword tool.
5. Find exact match searches and see if that is interesting enough.
6. Have a look at the top 10 results in google search.
7. Check the number of url backlinks,domain backlinks,age,PR of top ranking sites and make a judgement on how hard that they might be to beat in SEO.
8. Avoid the keyword if there is any brand name website on top position that might be hard to beat.
9. Go ahead and do the domain booking,hosting,wordpress installing,content writing,bookmarking,link pyramid building and other SEO.

Yeah. Thanks for your advice.
I just read the art of the SEO.
Judge the valuable keyword
1. search demand volume
2. Number of paid competitors and bid prices
3. Strength of Top 10 Results ( Domain time, PR, backlinks or something else)
4. Number of Search results

Of course, you can use some keyword tools to do research, but a lot of tools now need to pay.

Find keyword now I take action
1. Use google keyword tool
2. find some keyword from competitors
3. Strength of Top 10 results to analyze the competition of keyword

Also, try to find keywords that has domain name available. It will be easier for you to rank for that particular keyword and of course you can target other keywords too.

Go for keywords that has the the following phrases "tips", "guides", "How to", "review", etc.Thats are good keywords to make money.