Not sure how to help you with this, since that will change with what you want to archive in the loop. But maybe writing it in pseudo code might help:
For each letter in the word
for letter, position in enumerate(word):
You want to check if your guess is the letter
if letter == guess:
If it is you want to add the letter to your display
, exactly on the position it is in the original word
display[position] = letter
Does that kind of thinking help?