When ever you create a new entry page for your latest entry you will need to update your links. There are two ways to do this. You could create a whole new page and update all the links to your "latest entry" all over your site. Or, you can move your old entry to a new page and keep your latest entry on the same page all the time.
If you want to create a whole new page you will have to keep track of all the places that you have linked to "new entry" from. Then you will have to go to all those places and change the links to go to your new page. You should definitely have a link to it from your homepage, anywhere else is up to you.
If you want to use the same page all the time then you will need to "clean house" every once in a while so the page doesn't get too long. Long pages take too long to download and people may go elsewhere it they have to wait.
You will have to create an archive page for the month (or whatever you chose). Then cut and paste the old entries from your "new entry" page to your "archive" page.
No matter which way you decide to do it you will need to create new links on your other archive pages to link to your new archive pages. You may want to create a page that links to all your monthly archive pages and then on your monthly pages you can link to your daily pages. This keeps it organized so people can find what they are looking for quickly. On the Internet, quicker is better.
