Thanks to all for replies.
I think I get yfwd but put together with 'yarn round needle' and 'yarn over needle' all I end up doing is winding the wool around the needle twice and it doesn't go right when I do the next row. I don't know how else to do it.
The instructions for one row read like this:
'k1, yfwd, yrn,yon,k2tog,yfwd,yrn,yon,k2tog,k1. 8sts'.
Perhaps I am doing it right but somehow winding the wool in the wrong way.