http://physics.princeton.edu/pulsar/K1JT/JT65.pdfHere is a an article written by Joe K1JT, on how it works.
The easiest way to remove strong signals is to narrow the receive bandwith, perhaps using a CW filter to only see part of the waterfall.
If you wish to work DX, I find it helps to use a vertical antenna, which has a good rejection of high angle short skip signals.
Zack W1VT