Google will INDEX perhaps 1000s of characters in a title… but I don’t think anyone knows exactly how many characters or words Google will count AS a TITLE TAG when determining RELEVANCE OF A DOCUMENT for ranking purposes. It is a very hard thing to try to isolate accurately with all the testing and obfuscation Google uses to hide it’s ‘secret sauce’. I have had ranking success with longer titles – much longer titles. Google certainly reads ALL the words in your page title (unless you are spamming it silly, of course).
Your SEO keywords are the keywords and phrases in your web content that make it possible for people to find your site via search engines. A website that is well optimized for search engines "speaks the same language" as its potential visitor base with keywords for SEO that help connect searchers to your site. Keywords are one of the main elements of SEO.