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Ok, I know I'm doing something wrong. I lay the red down, let it dry, then put wet orange next to it, like in the first picture.

But when I use a wet brush to pull the wet orange onto the dry red, it pulls it from the center of the orange, not the edge like in the second picture. That leaves me with a line of orange between a semi orange area and thus a terrible transition.

What am I doing wrong? Should the red be wet as well? Should I thin my paints more?

You're not wet blending here, you're feathering; and what you should do is:

Basecoat red, allow to dry.
Lay down successive coats of thinned orange-red mix, slowing increasing the amount of orange in the mix, brushing AWAY from the red towards the orange strong points to build up the colour gradually. You can also work this the opposite way by putting a line of pure orange down where you want it strongest.

When wet blending, put down the red first, allow to dry. On large areas you may want to put down an orange layer and allow that to dry too. Then put down thinned orange in a layer, and thinned red in a layer and brush in short zig-zag motions across the divide of the two wet later, noting that you effectively 'pull' pigment with a brush stroke. You will most likely want to use a dry-time extender for this to get an even result.

IMO in general the feathering / layering method is easier and just as effective.

Cool, thanks, I'll try that.