How do I play this exactly? Sanity/Light and Darkness - please explain

[Tintin]

Thanks guys. Actually, I do crouch in the dark a lot and stay hidden (a habit from my days of playing the Thief games). I don't sprint anywhere, I pretty much crouch and creep wherever I go. Maybe I need to do a bit of sprinting every now and then and move around more. I don't use the oil lantern in the dim light and I do make use of the natural moonlight from windows, I just use it in the pitch black darkness. Daniel still seems to freak out easily. I tried bathing in the glow of a candle for awhile and my sanity slowly increased but never back to the point where I was completely sane. Is this normal? Maybe I should use more tinderboxes (I still have 11 or so at this point) and less of the lantern. Thanks for your help!