Welcome to an Introduction to Fingerstyle!
Fingerstyle is a technique that is beneficial to us in many ways. With this technique we are able to achieve a much more pianistic way of playing; that is, the ability to play seperate lines all at once. I think it was the French composer Claude Debussy that said "the guitar is an orchestra contained within one instrument" or words to that effect. However, you will not only benefit from technique by employing this style. The tonal possibilites available with the use of the right hand fingers are limitless. It is worth exploring the many avenues of fingerstyle technique for this reason alone.
Ok, lets start with the basics of the technique.
The right arm should be in the same position as when playing with a pick. It is vital that the wrist is kept straight at all times. Avoid the temptation to bend the wrist as it may induce tension which is hazardous to your technique. The thumb generally takes the responsibility of dealing with the bass notes and the remaining three fingers: Index, middle and ring or I,M and A respectively deal with the treble strings.
Work on the example given making sure you are mindful of the points made. Once you are comfortable with that, move onto the next lesson so we can use these techniques with a musical example