I am using a theme forrest template for my website and when I create a K2 item it displays on the sidebar, how can I get my K2 items to display in the normal content area / position?

Maybe to the page you are referring to the component is not loading and only modules do or the page you are viewing is no K2 page but joomla page. There are many options I can think of but only one should be your case.

Could you provide a link to your site?

P.S. You might consider a possibility to ask your template provider for advise on this issue as well.