Yes you are correct. You must match up (or center) the needle and the magnifying glass and your exposure (under normal circumstances - such as mixed tones in the scene as opposed to a solid black wall) should be correct.
This camera is a GREAT camera for learning photography - because you the photographer make all the decisions so you learn what you are doing.
The next important step is to understand the theory and relationship between film speed - aperture and shutter speed.
You can get this information here:
http://www.photography.ca/phototips/phototips1.htm
Hope it helps - keep shooting!


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