Hold the needles in such a way that the right side is facing you. Draw out the lower needle, carefully of course, until you can make a loop with the flexible part of the needle on both sides. Hold the loose tail yarn with your hand, and knit with the main yarn, you'll see that the first knitted stitch holds the loose end on its place. Knit the first row.
Do not try to be fast at first. Keep an eye on the way the yarn goes, especially when changing needles, you will soon find out what works best for you. At least that's my experience.
After three rows you have knitted a nice little 'bag':
Take some time to just go on - before going on to your next project - including increases, decreases and so on. In fact that's all knitting is about.