It is difficult to say what is the route cause of your problem without looking into your file.
“Writing two 5 letterwords fill the whole page. the cursor appears in the middle of the page” gives me the idea that a title style is used.
Recommendation:
1- Open the Style&Formatting Window (F11) and see which style is indicated when you place the cursor at a certain location in your text. You also can use this window to adjust your styles.
Styles function in LibO is what I really like. But I recommend to have a look at the free guides which you can download from http://www.libreoffice.org/get-help/documentation/ It took me a while to understand all but once you understand this, LibO’s styles are great.
2 - Create your own template with all styles and formats you want and use this as your default template. I have about 5 different templates for Writer only. Depending on what I want to write I choose my template. Also here, reading the Guides will help you. Additional question you can ask here.