In the Clips Window, click on the Titles button.

Choose a title style and type in the words in the box below it. You can click the Preview button to see how it will look. You can also set motion effects for the words, adjust the speed of movement, change the font, font-size and font-color.

Drag the "green T" and place it between the clips in the timeline (like you did with Transitions)

Note - In the Timeline, the transition will look like any other video clip

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Push the Play button to see what your movie looks like with your titles.

Next....add background audio to your movie.

Next