This post taken from http://digital-photography-school.com/blog/how-to-hold-a-digital-camera/

Exactly how you should grip your camera will depend upon what type of digital
camera you are using and varies from person to person depending upon preference.
There is no real right or wrong way to do it but here’s the technique that I
generally use:

1. Use your right hand to grip the right hand end of the
   camera. Your forefinger should sit lightly above the shutter release,
   your other three fingers curling around the front of the camera. Your right
   thumb grips onto the back of the camera. Most cameras these days have some sort
   of grip and even impressions for where fingers should go so this should feel
   natural. Use a strong grip with your right hand but don’t grip it so tightly
   that you end up shaking the camera. (keep in mind our previous post
   on shutter technique - squeeze the shutter don’t jab at it).
2. The positioning of your left hand will depend upon your
   camera but in in general it should support the weight of the camera and will
   either sit underneath the camera or under/around a lens if you have a DSLR.
3. If you’re shooting using the view finder to line up your
   shot you’ll have the camera nice and close into your body which will add extra
   stability but if you’re using the LCD make sure you don’t hold your camera too
   far away from you. Tuck your elbows into your sides and lean the camera out a
   little from your face (around 30cm). Alternatively use the viewfinder if it’s
   not too small or difficult to see through (a problem on many point and shoots
   these days).
4. Add extra stability by leaning against a solid object like
   a wall or a tree or by sitting or kneeling down. If you have to stand and don’t
   have anything to lean on for extra support put your feet shoulder width apart to
   give yourself a steady stance. The stiller you can keep your body the stiller
   the camera will be.

Another quick bonus tip - before you take your shot take a
gentle but deep breath, hold it, then take the shot and exhale. The other method
people use is the exact opposite - exhale and before inhaling again take the
shot. It’s amazing how much a body rises and falls simply by breathing - being
conscious of it can give you an edge.

One last note - this post is about ‘holding a camera’ in a
way that will help eliminate camera shake. It’s not rocket science - but it’s
amazing how many people get it wrong and wonder why their images are blurry.

please read more at the above links.

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