Almost done with manual for Gentoo - but need some help

[Joseph <..hidden..>]

When I type:
$ psql -U ledgersmb -d ledgersmb_db

I get:
Welcome to psql 8.0.13, the PostgreSQL interactive terminal.

Type:  \copyright for distribution terms
       \h for help with SQL commands
       \? for help with psql commands
       \g or terminate with semicolon to execute query
       \q to quit

ledgersmb_db=#

At this point to change or setup password for this user "ledgersmb" and
database "ledgersmb_db" do I type:
UPDATE users_conf SET password = md5('MYPASSWORD') WHERE id = 1;

Do I need to type password within bracket and quotation: ('phrase') 

-- 
#Joseph