[MENTION=103008]bouldersoundguy[/MENTION] said the important truth. Learn to use your ears.
That second graph is what I've heard called a
sausage, because it's been compressed to the point it's devoid of dynamics. (Well, I guess there's a constant dynamic, usually loud.)
I suggest you look at online videos about compression at therecordingrevolution.com's channel and many others.
Now, to answer your question, the first knob to understand in compression is
threshold, because that's going to decide when the compressor will kick in, and it's entirely dependent on the dynamics and amplitude of the input signal. For instance, if your input track had an average amplitude of -18dB and you had a couple of peaks up to -10dB, and you'd need to have the threshold set to less than -10 before it would affect the signal at all. The lower you go, the more of the track would be captured by the compressor. Then, the amount of compression, how quickly it compresses and length of time it's compressed are the ratio, attack/knee, and release knobs.
Here's a track (essentially a mostly finished bounce - not sausage-y) that I applied a compressor to. I turned the threshold down to about -18 (IIRC - didn't keep it!) and set a high ratio so you can see in the white line at the top of the graph when the compressor is working and by how much the signal is being reduced. (NB - don't use the graph view to decide what to do with the knobs either!).
