There are two basic right hand positions when using the pick. The first keeps the fingers of the right hand closed. In the the second position, the hand is held open across the face of the guitar. Try both positions and decide which one feels most comfortable.
All notes must be fretted with the tips of the fingers and positioned as close as practical to the fretwires.
There are also two basic positions for the left hand. In most cases, the left hand thumb should be positioned behind the neck of the guitar with the fingers evenly arched over the fretboard. When using techniques such as the bend# release bend# vibrato etc. you may find it more comfortable to have the left hand thumb in a higher position, wrapped over the top of the fretboard.