I think there is also the freebies for staying logged in for 2 hours per day or something. You get candies and a basket to make a loot chest out of. I've been neglecting it but it should be there?
If you mean the blue awakening weapon that is given to you at base level enhancement and has bonus to pvp damage then you get them regularly from world bosses.
Green grade awakening weapon that is given to you at +10 can be purchased at the blacksmith in Altinova and possibly a few other towns such as Valencia.
AP is tricky to answer. Depends on your budget and what you currently have. Aim to boost your awakening weapon to TRI or simply buy one off the market. It is a pretty dramatic difference. DUO is acceptable too.
TRI your main hand as well then offhand when you can.
Accessories may be a cheap way to get some AP depending on what you are wearing. A few updates back they released the Asula item set which can be obtained form mobs in the mediah region. This is pretty damn good until you begin replacing them with better stuff. The Asula set cannot be upgraded but are powerful, think of it as a suped up Jarette's accessories set.
I believe this also answers your question on whether or not you should be picking up loot. The answer is technically no. You should have pets to do it for you! Failing that, yes you should. It is an incredible source of income, many events have drops from killing mobs that you will not get if you do not loot. Black Stones for crafting and just selling junk items monsters drop is actually an incredible source of income, arguably the best once you find a good spot and can clear waves of enemies quickly (and loot just as quick).
If you are enjoying the game, I highly recommend spending a few dollars for pets. You could possibly get some off the mp but everyone is bidding for them so the RNG is not going to be favourable. There is currently a halloween pet pack which will give you more pets than you can actually use at once, which is fine since these halloween pets can be mashed to level up each other. A bit pricey though. They really should have allowed you to do a quest for 1 pet or something at least.
Lastly. Whatever you think a "decent amount of money" is, it is never enough in an MMO! A baby elephant needs 35 million and is mostly useless cosmetic slow mount. I need 11 of them.
Post a pic of your witch!