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I capo the strings between the 2nd and 3rd fret, you can also just use your finger to hold the string down.
The double fold of paper when inserted should have drag from the string happening on it.

If not use the nut tutorial to adjust and understand more.
Take a steel ruler and place it up to the base of the nut, ideally it will be long enough to reach around the 14th fret.
A single side of our A4 should just feel some resistance at the 7th fret
If the paper is loose, then you need to tighten your truss rod, adjust the truss rod in a clockwise direction to bring the tension on and apply some friction to the paper under the ruler.

If during the adjustment of the truss rod its starts to make a cracking sound or its too tight to move, do not adjust it, visit local music shop or luthier as your truss rod may already be at its maximum travel, further adjustment can break the head of the truss rod off.
It should be a drag fit at the 7th.
With a string gauge we now check our height at the 12th fret of our E strings.

This E string is low, I am looking for around 80 thou or 2mm string clearance.
Winding the saddle up, I can lift the Bass E string.
A simple piece of torn A4 paper, folded on one end.
Most A4 paper is 4 thou thick approximatley.
The single flat side of the A4 should slip in under the string and above the 1st fret.
I adjust until 80 thou is obtained.
P2
Tune all strings to pitch.
Repeat for the treble E string, we are aiming for around 60 thou (1.5mm)

"How To" Basic Guitar Setup