I agree that you need to buy good needles. If they came with your sewing machine, being promotional items, they may be of very poor quality.
The thread that first comes off the spool goes into the eye of the needle and the end that you cut off the spool gets knotted. This will keep the "twist" going in the right direction for hand sewing - it lessens tangles and wear.
Don't allow the needle to stay at the same point on the thread. Start with the free end of the thread just an inch or two from the exit point on top of your work. Move the needle a little closer to the free end of the thread every few stitches. Roll the needle counter-clockwise every so often to avoid kinks.