Bernie,
There are many answers to this question, as there are also many people with lots of experience on this board to answer it.
From my point of view, the best way to use points is to use them for business class upgrades or business class flights on long haul domestic or international flights.
In terms of better days to use them flights it all depends on how far in advance you use them and at what hours of the day you want to fly. Avoidance of peak times and events will help make getting the flights you want. Thats means avoiding flying on Mondays and Fridays, Event weekends like AFL Grand Final, Grand Prix etc, or school hoildays. If you waqnt to fly at these times you will need to book well in advance. The biggest thing is being flexible so that if the flights are not available on the day you want you can move the trip a day or two each side.
Also something to bear in mind is that you should try and fly direct as this results in paying less fuel fines and airport taxes, it can also save ponts.
Hope this abbreaviated advice helps. I am sure others will add their comments
BTW, welcome to FF
Reggie