All newbies need to learn the basics, so that they become more competent as they gain experience.
Hopefully, the steel IS free cutting mild steel.
Avoid rebar like the plague, never intended for machining, so VERY difficult to machine for a decent finish
There is a lot to learn, all at once, so commence with the MINIMUM of of variables.
Having ground the tool and set it on centre height, so do not have more than three diameters length sticking out of the chuck (Incidentally, a Self Centering, 3 jaw chuck is MOST unlikely to hold work absolutely concentric. , 0.003″ (0.075 mm) run out is a good one).
As an Apprentice, the first two things that I learned were that putting on a cut removed twice as much as expected (the other side coming round and being cut) and how to rotate a handwheel slowly and steadily to achieve a steady feed.
Where are you located? Some face to face tuition will help you.
Part of the learning curve is to sharpen the tool correctly and to set it on centre height, and then to learn by cutting metal, at finding the depths of cut and feed rates to provide a good surface finish.
Using power feed might give the finish that you want, but removes the lesson of learning how to handle the controls.
For a start just stick to ABSOLUTE basics, set a low cutting speed, learn how depth of cut, and feed rate affect surface finish. Buy and read “Basic Lathework” by Stan Bray (45 in the Workshop Practice Series) or Lathework, A Complete Course” by Harold Hall (34 in the WPS)
Stan Bray was the founding editor of Model Engineer’s Workshop, and was succeeded by Harold Hall, so they both know what they were about.
A knife tool, although sharp and set at centre height will still produce a very slightly rough finish. A minute rounding of the nose will improve matters, but learn to walk before even trying to jog, let alone run or sprint.
Since the tool is moving along a rotating workpiece, the cut will actually be a spiral. A slow feed per rev will GENERATE a very fine spiral, a rapid feed will produce an obvious spiral.
The depth of cut will determine how obvious the spiral is.
As you learn the basics, on one machine, you will also become familiar with the characteristics of that particular machine. A supposedly identical machine might behave slightly differently, for a variety of reasons.
Until you have gained experience, you are going to have difficulty in working to fine limits, so don’t expect air tight fits! (Some of us, even with years of experience have difficulty from time to time!)
Just take time to learn, and learn from your mistakes
Howard