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On the far right (for me anyway) is an icon that says Host an image when you roll your cursor over it. Click that.
A browse box will come up.
Select browse and go to your image file. Usually a jpg
Once it's selected, click Host It in the browse box. You can also choose to make the image smaller or larger if you wish. I leave it at default.
You will be presented with three lines, I click copy on the middle one, which is an img tag format. It will turn blue meaning it's selected and then I right click and choose copy.
Now, I have found a couple of things peculiar about this. Possibly related to me running FireFox or Linux. I cannot just click on the post text area and clear the image browse box. I have to click on the insert an image icon, then ok it. It inserts img /img tags in my text. I delete those and then paste copied image link.
I suppose I could have just copied the image url and then pasted it into those img tags.
So once it's pasted I click Send.