I was in a group last night and I was having the hardest time hitting monsters 1-3 levels above me with Taunting Blade.

I'm level 10 with 10 points in Blades,
Crafted weapon (level 12, 97% qua)
Fully buffed by a level 10 druid,
Other people hitting these monsters,
Spell casters landing spells on these monsters,
Other melee classes landing plenty of hits, and dealing plenty of damage.

I land maybe 3 hits out of 10 with Taunting Blade, and if they aren't the first couple of swings that I land then we're in trouble.

I got tired of getting my group killed because I couldn't hold aggro last night so I logged off, frustrated.

How can I fix this as a new player to this server (no guild, or major resources for gear)?

Sounds like you didn't enchant your crafted weapon. Every "magical" item has a bonus %, it's one of the 4 stats in item window next to quality, condition and durability. Magical gear that drops already has the bonus, crafted gear needs to be enchanted at the Enchanter npc -they're in almost every town and there's 2 in TNN. Weapons and scale are pretty expensive to enchant, altho shouldnt be too much for a lvl 12.