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Although the title tag is the most important factor for on page optimisation nothing is more effective than using your keywords in your domain name. Having your keyword phrase in your domain name is the entry point for all major search engines. It is in fact possible to score a high ranking with just this only (depending if there is little competition).
The only time that this has a negative effect on your site is if you were to use a long phrase, for example over 5 words.
A guide to SEO: Best SEO site | Title Tag | Content | Domain name | URL | Headings/bold/italics | Images and Alt tags | META description
META keywords | Website / page age | W3C validation | Back links