Meditation help - Am i observing a thought like I should or entertaining it? I have a question with how to properly meditate, and a quick glance at other questions at this site seem to indicate I believe this exchange can provide answers. 

I have two questions:

1) When I meditate, I often find myself daydreaming more than having thoughts bother me, although I can very occasionally find myself daydreaming of something in my past that was unpleasant (doesn't seem to happen much though). To simply observe this thought, do I let it play out or try and
focus on my breathing?

2) I have some symptoms of OCD, such as the whim of my internal voice at times playing out an uncomfortable experience in my head or a statement that bothers me (which is why my mind states it), and I worry if I don't address I might subconsciously believe it. (Such as, if the compulsive thought that bothered me was "I'm a bad person" and if I just let that sit with me instead of addressing it, merely observe it, I might subconsciously believe it. This is just an example but it illustrates what I'm getting at). Can I rest assured just observing such a thought won't cause such subconscious beliefs?
What you have described is not really "observing". It is "thinking". 

Thinking &amp; observing are basically two different &amp; antagonist activities. 

While there is a place for thinking, pondering or 'reflection' (yoniso manasikara) in Buddhist meditation, it is not observing (anupassi). 

Therefore, if you just let thinking continue instead of addressing it, you certainly might subconsciously believe it.



If the thought arises: "I am a bad person", you should investigate or examine the truth or falseness of this thought; but in terms of emotions &amp; actions rather than 'persons'. 

In Buddhism, there are five precepts which are about: (i) killing; (ii) stealing; (iii) unwholesome sex; (iv) dishonesty; &amp; (v) drugs &amp; alcohol. These five are bad or harmful actions. In addition, thoughts &amp; emotions of greed, anger/hatred &amp; selfishness are also considered bad or harmful. 

In Buddhism, a meditator does not think: "I am a bad person". Instead, a meditator acknowledges or refects: "This is a harmful emotion" or "This a harmful action". The focus here is upon the emotion or the action rather than the person. The meditator then reflects (thinks about) why the emotion or action is bad or harmful, which, in itself, will change the emotion &amp; action towards a good emotion &amp; good action.