Originally Posted by: Leon ChrisI found holding it horizontal with the string I get a really bad delay and it sounds horrible with huge gaps in time between actual "picks".[/quote]
Congrats on this crucial discovery.
[QUOTE=Leon Chris]How do you guys that can alternate pick well hold your pick.

Some people angle it upwards (Marty Friedman is notable in this regard); some downward (Yngwie Malmsteen's technique is wonderful in this regard, as is Tony MacAlpine's & Paul Gilbert).

The angling of the pick is usually around 30 to 45 degrees of parallel with the string. Another crucial aspect is to just get the very tip of the pick across the string and back. Don't dig in too much or you will get more "drag".

In lesson 2 & 3 I focus on the picking aspect.

http://www.guitartricks.com/lesson.php?input=10335&s_id=287
http://www.guitartricks.com/lesson.php?input=10336&s_id=287

Finally, and maybe most importantly, stay loose and relaxed. Do not tense up or grip the pick, strings, guitar too tightly. Use just enough pressure to hold everything and play. Too much is wasted effort, will slow you down, and wear you out (decrease your endurance).

Let me know how it goes!