1500 searches per month (approx) / 30 days = 50 searches per day.
You are getting 10 visitors, which means 10/50 = 0.2 -> you are getting only 20% of the visitors.
The distribution of the visits does depend on niche and other factors (title, CTR, etc) but usually #1 and #2 get more than 70% of the traffic so yes it's pretty normal.
Numer "1300" is only searches per month. This is not same as traffic per month. You should take them to your estimation. Good way is take about 30% of total number searches per month if you want know how can you get traffic from this keyword (of course if you have rank from 1 to 3 position keyword in serp)
Yes, this is very important thing. How you check rank your website? Manually, with SEO Software or Google Webmasters Tools? If you check your rank manually, propably your result is bad.
Yes, it's very annoying and I found this changed in the past few years...being #3 or even #4 got you decent traffic...at least for me. But now with the same sites, same searches, half the traffic for spots after places 1 and 2...
Build up your longtails. Don't focus entirely on your main keyword as in the end most sites out there ultimately pull more traffic from the combination of keywords they are ranking for other than the main kw.
You should definitely focus on ranking long tail keywords aswell. Don't just rely on a traffic that comes from your main keyword. Try to rank as many long tail keywords as possible to get more traffic.
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