Summarize this article:

Use a high strength hot melt glue or epoxy to glue four ceramic magnets to the shaft. You want the magnet to be stationary with respect to the shaft. The magnets should be glued onto the shaft after the shaft has been inserted into the frame. Allow the glue to dry for several minutes (the instructions on the container can tell you exact drying times for your type of glue). For best results, use 1x2x5 cm ceramic magnets (these can be found online for a reasonable price). Glue them so that two magnets are facing the coil with their north side, and two are facing the coil with their south side. This allows you to see if the ends of the magnets hit the inside of the frame. The magnets must turn freely, but as close as possible to the walls of the frame. Again, having the magnet's ends as close the copper wire windings as possible will increase the "exciting" action of the magnetic fields the magnet produces. You may want to wind a string around the end of the shaft, then pull it sharply to turn the magnets. You could even just spin it with your fingers. As the shaft turns, you should get a small voltage (enough to light a 1.5 volt light bulb). You could improve the power output by putting a pinwheel on the end of the shaft and connecting it to an electric fan to turn the wheel. Keep in mind that this is only good to demonstrate the operation of the generator since you use more electricity turning it than you create.

Summary:
Glue the magnets to the shaft. Turn the shaft with your fingers. Spin the shaft as fast as possible.