Bob is right, Stan. If you have the meter set to measure Ohms and touch the leads to a "hot" wire and a ground, the current will likely be too high for the meter's inner fuse and blow it. An ohmmeter has a battery inside so it can test continuity (how "solidly" connected a circuit is) by applying its own small voltage to it, and then measuring how easily (or not) the electrons flow. So never apply the meter to a live circuit while set for Ohms, neither 12 volt nor 120 volt. Make sure the power is off to that circuit, or make sure you have extra meter fuses ??) .
As Bob pointed out, if there is corrosion or a bad connection somewhere in a circuit, it will cause resistance to electron flow, and the meter's needle will move to somewhere between 0 on the right and infinity on the left. When you hold the probes together, or against the same wire like you did, there is nothing to resist current flow between the probes, so the needle will peg fully right ... 0 ohms. That's usually what you want to see in a connection or circuit with virtually nothing wrong, and therefore has 'continuity' from one end to the other. On the meter scale, the top one identified with the upside down horseshoe, the Greek symbol omega, is the actual one meant for ohm measurement, but don't worry about it; you usually just want to know if the needle moves adequately or all the way to the right, indicating a nice unimpeded circuit from one end to another.
Your OHM X1K on the dial is the correct meter switch selection for resistance. At the bottom of the dial are the settings for alternating current voltage; normal 120 volt circuits would require using the 250 mark. To the left are settings for measuring direct current in milliamperes. On the right are the ones for measuring direct current (12 volt in most instances, but sometimes 6 volts) voltage, basically telling you which wire or connector is hot to the battery positive post by putting the red probe on it and the black one to chassis metal or a known ground. Set the dial at 50 to read a 12 volt circuit, which would show up on the needle's 0 to 50 scale.
There is more to understanding the use of a meter, especially reading an analog one like yours, so I'd try to get an owner's sheet from GB if possible.
Joel