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I just got into Warmachine, so far I have the following units for Khador

Old Witch & Scrapjack (-3)
Man O' War Shocktroopers 9
Destroyer 9
Juggernaught 9
Widow Makers 4
Alexia & Risen 5

So if I understand this correctly so far I have 33 points, which means for a standard game I can spend 2 more.

My main theme here is Old Witch/Young Witch. Other than this my army is pretty much a mess because I have no idea how to play warmachine and I don't understand how to make a well balanced army.

However I think I can assign some battlefield roles to all my units that might make this unit workable.

Witches - Attrition, Tear through infantry, revel in chaos of death and such. Hold objectives. Very fun
Warjacks - Fight Warjacks/Heavy Infantry
Widow Makers - Kill Solos, Leaders
Man O' War Shocktroops - Fight other heavy infantry, assist in attrition, hold points.

When I put it like this my list looks a little more managable. I think I can kill any unit type, and I am pretty sure I can hold Objectives.

1) Do my units do what I think they do?
2) What shoul I spend my last two points on? I could get a manhunter, but I am not sure why I would do that other than I just like the female model.
3) Any tips on list building?

So your points are off, juggernauts only cost 7 points. That gives you 4 points to play with and with those I suggest a widowmaker marksman he makes widowmakers better. Next I would grab gorman de wulfe, he has smoke grenades which you can use to block LoS to your guy and the old witch says that they do not block LoS for her warjacks. Also gorman makes enemy warjacks easier to kill, can mop up swarms of enemy infantry, and blind the enemy warcaster.

The only problem I see is that you have too few troops to make alexia really shine. She needs a constant supply of corpse tokens to use her abilities and you only have 10 models that she can eat. So that means you will be relying on your opponent to provide the bodies, but if you play against cryx she will be useless outside of dominate undead (Influence but more useless). I think it is more the way you look at alexia and the risen, don't think of them as a unit with a cool leader, play them as a cool solo who comes with undead focus.

So here is what I would suggest, drop the shock troopers and maybe a juggernaut for a full winterguard deathstar,
10 WG
3 rocketeers
officer and standard
kovnik joe
13pts

that leaves you 3 points for someone like eiryss or 1 less rocketeer and 2 other solos.

I would also suggest you looking into a different caster to learn the game with, Old Witch can be a little advanced if you don't no how to play. however, i would highly endorse grabbing the WG Deathstar.

Warjacks are not just for other Warjacks. the Destroyer is a mix, the Bombard Screams Infantry killz while his Executioner's Axe find home chopping up Warjacks. Juggy, yes he likes to chop up Jacks. Where as his Character version Beast 09 has Reach and thresher. Thresher is a Front Arc sweep kinda thing. Beast likes infantry Lines.

Thanks, so more infantry... I will make sure to get some wintergaurd then.

I notice then I will be without heavy infantry then... is that ok?

Heavy infantry are just slow squishies. You really don't need them because what you have can already deal with anything that your opponent can throw at you.

I'd recommend Sylys Wyshnalyrr your two points for Old Witch. He gives a free upkeep, extended range on offensive spells, and is just pretty much written to be her right hand elf.