You can upload the pictures when you post, which is what I usually do.
Or you can also upload them to a site like photobucket.com, and then, using the icon that looks like a little mountain, paste in the link to it.
What you're doing now is fine though.
By "my photos section" are you referring to your album? You can upload pictures to that as well, and then link to them in the same way as if they were photobucket pictures.