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We develop the analytic and numerical tools for data analysis of the gravitational-wave signals from spinning neutron stars for ground-based laser interferometric detectors. We study in detail the statistical properties of the optimum functional that need to be calculated in order to detect the gravitational-wave signal from a spinning neutron star and estimate its parameters. We derive formulae for false alarm and detection probabilities both for the optimal and the suboptimal filters. We assess the computational requirements needed to do the signal search. We compare a number of criteria to build sufficiently accurate templates for our data analysis scheme. We verify the validity of our concepts and formulae by means of the Monte Carlo simulations. We present algorithms by which one can estimate the parameters of the continuous signals accurately. PACS number(s): 95.55.Ym,04.80.Nn,95.75.Pq,97.60.Gb