Filtering your IP address in Google Analytics means that any visits made to your site from your computer will not be tallied in the totals for any of the data collected, including site visits. Since the numbers won't be skewed by the many times a day you visit your own blog, this gives you a more accurate picture of your reader activity.
This is not the most straightforward process for those of us who aren't techies, so here's a simple tute.
Step 1: In Google Analytics, under Accounts, select the name of your blog.
Step 4: Enter "Filter Name." I just called it, "Visits from my computer." Select "Predefined Filter" and then "Exclude," "Traffic from the IP addresses," "That are equal to." And then enter your IP address in the fields below. How do you find out your IP address?
Step 5: What is my IP address? Visit http://ipchicken.com/ and your IP address will pop up right on the screen. It's incredibly easy. Type that number in the boxes. You do not need to type in any slashes or periods. Just the numbers.
Step 6: On the same page, under the section called "Apply fiter to website profiles" select your blog from the box on the left, called "Available website profiles," and hit the "Add" button to move it to the box on the right, called "Selected website profiles."
Step 7: Save Changes and you're done! You have now set up a filter so the Google Analytics will not count visits to your site made from your own computer.