There've been some questions about stranded color, and floats, and carrying yarns and stuff. So here's how I do it; really there's no wrong way, unless it unravels. I carry the yarn in my left hand, knitting continental, all the time. So when it's time to carry two (or more) colors, I just add them in my left hand, between different fingers. First color is between index and middle, second color between middle and ring, etc. I can and have carried four colors this way, leaving the fourth color to sort of dangle, and picking it up as needed (during brief moments of insanity). Here's a photo to give you an idea:
Note the Dolores tee. For good measure, the husbeast and I got a little crazy and shot some video:
You get the idea. I hope. (I've never watched video of myself knitting before. Wow. I look kind of, like, talented, don't I? Huh. Damnedest thing.)
There were also some questions about how the stranded color should look on the reverse side, and it should be a simple fabric with floats of one color or the other, running along. They don't need to be twisted, and shouldn't be (it'll just add bulk to the fabric, and unless you're knitting with sock yarn, you really don't need bulk). Remember, those floats make the fabric twice as thick and twice as warm.
See? It's just strings of yarn going across the back of the fabric.
And the front? Oh, it looks like this:
Heeheehee. Things are moving along. And I can knit the pattern while reading. Whee!