Yeah I assume. As I said I do not use Audacity. Traditionally (that sounds funny) you would use a multitrack software to make a mix. Even though your only using two mono track this is a mix.
6. Mix the tracks using the track faders (keep in mind there is a summing effect)
This sounds like it is set up like a traditional (basic) multitrack session. If there are faders I would start by turning them both down. Then bring up the stonger (sounding) of the two sources until the levels are about -3 or -5 at peak. Look for the louder sections if your able.
Then bring up the other source while listening to playback. Add it in to taste (until it sounds best) while still making sure not to have your levels going to 100%. Once you have a good sound just make sure the loudest passages are not clipping. Then you would process (bounce, render, whatever) it into either a stereo (dual mono) or a mono track. If the peak's of that final track are not at or over 100% (0vu) your probably good to go. If they are well under that you may want to normalize to 99% or 100% peak volume.
This is a very simplified example. Once your better at the workflow you may try automating levels when needed, adding effects like EQ or compression, or whatever makes it sound good to you. Oh and also you probably want to archive the untouched tracks for future remixing once you have honed your chops.