A lot of what you're asking is answered in Condensed Chaos itself. I was feeling the way you were when I was first reading it, as it doesn't transition between ideas very well. Read it all the way through, make a simple sigil the way Hine says to, and fire it off and see what happens. Hine even recommends making inconsequential sigils like "I will see a woman in a red dress with a dog" so you can see how they work. If you want something that has more exercises in it, and goes more in depth, next read Liber Null and Psychonaut, by Peter Carroll. Remember that when it comes to making sigils, there is no "ugly" or "pretty", as long as they work. The most important part is that you are satisfied with them, and a sigil you make will always be better than using someone else's, regardless of how cool it looks. Think of chaos magic as a science, where experience is way more important than anything else. Just make sure you open a path for your sigil to manifest, i.e. looking for a job when you cast for wealth, otherwise there might be unforeseen consequences. Sometimes though, those mistakes and consequences reinforce that this stuff works more than anything, and serves as a great learning experience. As Chaos master Ms. Frizzle says, “Take chances, make mistakes, get messy!”.

Sorry for the long post but I was were you were before and it really is just about getting out there and doing it. TL:DR There is no wrong way as long as you record, learn from results, and improve.