Ohh, so thats what I am supposed to do!! Thank you both!!
As I said in my last post, after finding the weapons, I had made a lot of progress without dying. Lost pebbles and blood vials in the process and when I eventually died and started again from the lantern, the re-spawned enemies were now not leaving behind loot when I was killing them. So, I had no clue at all how the hell I am going to make progress in this game. With the start of the long weekend, here is to hoping for a great time(dying :D)
I always envy these posts! I wish I could experience this all over again blind. Once the basic mechanics click, you're in for an amazing experience.
Other posters have given some good short-term advice for Central Yharnham (the area you're in now) so the best thing I can contribute is in a broader sense.
Most From games offer multiple options on how to proceed and Bloodborne is no exception. The best thing you can do is needle your way into new areas/paths slowly but surely, feeling out how big a challenge the game is throwing at you. If you come up against a wall then chances are there's an alternative to proceeding - you can always come back later.
I liken exploring in From games to creating concentric circles around a bonfire. Slowly push forward into parts unknown but never just dash forward and get completely lost. Soon you'll be so familiar with the layout of the map that you'll be able to visualize it out of game. This repetition is a big part of how the game makes you feel that you're becoming more competent and powerful.
Also bear in mind that leveling up, while certainly important, is not as important as upgrading your weapon. If you feel like you may want to experiment with weapons you'll find later in the game, don't be afraid to upgrade everything to +3 as soon enough you'll be swimming in low level upgrade materials.
Alternatively, the ax and cleaver are both completely viable weapons to beat the game with, so don't feel that you need to change it up. The cane is also viable but generally considered a slightly more advanced weapon not suited for beginners.
Lastly, if you're having trouble figuring out what the hell is actually going on in the story, remember you can read item descriptions for lore and plot info. These games are pretty obtuse for the uninitiated and I'd say about 80% of the story is contained in descriptions.
Remember, progress isn't so much about defeating bosses or finding new lamps (although both are gratifying as hell!) and more about gaining confidence in your fighting skills and ability to overcome new challenges.
Please don't use guides/walkthroughs unless you're completely demoralized. As others have said it really ruins the experience and you won't realize that until it's too late.
Hope this helped a bit. Have fun! A first run of Bloodborne and a long weekend sound like an amazing time.