Inserting Images into Simple Post Content

Hi - I like your built-in 'Editor', but can't seem to figure out the simplest of things sometimes...

I want to start with a 'Simple Post', but put images to the right of the paragraphs sometimes...mid-way down the content. But i can only get them at the very top, and the 'move' option doesn't work.

Can you please instruct me what to do? I've attached an image of where i get it, but where i really want it to go. I'm clicking my cursor where i want the block or image to go...but can't get it there.

Also, when i do click my cursor in the content (where i want it to go), i don't have any 'blocks' on the right to choose from. Just a 'text' block. See other screenshot.

Thanks in advance for your help.