Normally when you knit in the round it IS all knits so you must be knitting it inside out. The only way to do that and continue knitting this way is to start purling so the knits show on the outside. You might be able to turn it inside out and have the yarn on the correct needle…not sure. :think:
There is a video at the top of the page under videos/advanced techniques. You can also see pictures here of the “proper” way to hold the needles. You have the circle of knitting away from you and the needles close to your body.