Mix the mortar in a wheelbarrow, if you are making your own. Use three parts sand and one and a half parts cement. Gradually add water until you have a thick, goopy mix. Premixes are also available if you don't want to mix your own.
Start at one end of the wall, or at a corner if your wall has a corner. Spread a 3/8- to 1-inch-thick layer of mortar on the foundation for the first block, using a trowel. Form a trough in the middle of the mortar patch to make sure the mortar compresses around the edges of the block.
Press the first block onto the mortar. Use a level to make sure it is plumb and even on the top. Adjust as needed. Use your trowel to scrape away any excess mortar that oozes out.
Spread mortar on the top of the foundation for the second block. Also apply a 1/2- to 3/8-inch-thick layer of mortar to the end of the previous block where the next block will be abutted. Tap the blocks into the mortar with a rubber mallet.
Set in and level the second block. Continue to lay blocks until the first course is complete.
Add the second course in the same manner, only staggering the vertical block joints. Use half blocks at the ends of fences where the staggering creates half block--sized gaps.
As the mortar starts to dry, run the end of a jointer tool down all the joints to smooth them down.