Extend your arm straight out keeping your arm relaxed. Your hand should be around the 2 or 3 o'clock position to your drum, and as aznpride said, the stick is held in the middle (or pretty close to it depending on stick length/balance).
Leading up to the claw in the '95 show we choked up on the right stick when we pushed to the edge and back to prep for the claw and played the part right before with our hands already in position.
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Scott McCoy
Guardsmen Cadets '86, '87 - Snare, Quadz
The Cavaliers '93-'96 - Snare
Cavaliers Anniversary Corps '08 - Snare
Music City Legend '06-'10 - Snare, Staff
Star United '10, '11 - Percussion