How to set up your Lulav & Esrog:

The spine of the Lulav should face you.
Place the Hadassim on the right side.
Place the Arovos on the left side.
The Hadassim should be slightly higher than the Arovos.

Doing the Mitzvah:

Hold the Lulav in the right hand. Hold the Esrog in the left hand upside down (pitum pointing down).
_{(Please note that a left-handed person holds the Lulav in the left hand and the Esrog in the right hand.)}

Say the following Berachah (blessing):

"Boruch ata Ado-noi E-lo-hei-nu Melech ha‘olam, asher kid‘shanu bi‘mitzvo-sav, vi‘tzivanu al ni-tilas lulav."
(Blessed are You, Hashem Our G-D, King of the Universe, who sanctified us with His mitzvot, and instructed us concerning the taking of the Lulav.)

On the first day only, we also say the following berachah (blessing):

"Boruch ata Ado-noi E-lo-hei-nu Melech ha‘olam, shehecheyonu v‘kiymonu v‘higiyonu lazmahn hazeh."
(Blessed are Your, Hashem our G-D, King of the universe, who has kept us alive, sustained us, and brought us to this season.)

TURN THE ESROG RIGHT SIDE UP (PITUM SIDE ON TOP).

Now we touch the Lulav and Esrog together and gently wave all species together 3 times in each direction:
- front, right, rear, left, up, and down (Ashkenaz)
OR
- right, left, front, up, down, and rear (Sephard/Arizal)
This is to show that Hashem is truly everywhere.