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Start by using your hand to support the puppy's chest, where the rib cage is. You can also use your forearm once you pick the puppy up. You'll need to go in from the side and place your hand between the dog's front legs. As you lift the puppy up, use your other hand to support the back end. In other words, your other hand or arm should be under the puppy's back legs and butt. Once your hands are in position, lift the puppy up. Make sure you continue to support both its chest and rump as you hold it. However, you can place one arm underneath the rump, and one arm around the torso, pulling the pup towards your body once you have it at chest height. Hold the puppy close to your body, not out away from you, as it can wriggle out of your arms. When moving the puppy back to the floor, make sure you still support the puppy's chest and rump. Also, never drop the puppy. Gently lower it all the way to the floor. While you may know not to yank on a pup's tail or pick it up that way, you should also not do that with the puppy's neck, even if you're holding it by the scruff. You could injure or even kill the puppy. Also, don't try to pick up the dog by a leg, as you could hurt the leg.
Place a hand under your puppy's chest. Support the back end. Lift the pup up. Place the puppy down the same way. Never grab a pup by its neck or tail.