i overrank my compertitprs on a single keyword with almost no budget,but lots lots of work- nearly 2 years.
8 links and #2? that is totally not bad man. Why do you care for #1 anyways. #2 and #1 get almost same traffic
I wouldn't worry about taking over the #1 position either. Sure, keep building your content and backlinks. But for now, why not win clicks to your site by providing the best page title and description for your given keyword? You can beat the guys in #1, and never go above #2. You are in a position to take clicks from them!
I find my eyes usually skip past the first link and go to the second one first. I'm sure a lot of people do this too. You could always find the owner of the domain and shoot them. =D Just kidding.
Yes, if you're at #2 it's good enough, try writing your title ALL IN CAPITAL LETTERS, that grabs attention
Yes you can beat that website, but not now! To be able to do that you have to do a lot of hardwork on it 1. search for advance and different strategies 2. study carefully what your competitor have that you don't have 3. never stop to try new things 4. fill your site with rich, effective and useful contents 5. and the most important quality backlinks