What you need:
Performing the ritual
Set up your altar the way you see fit, be sure to have plenty of matches, as well as a small heat-proof container in which you can place them when used.
Now start out by having your candles lit and the incense as well. Lift your knife and touch its blade to the water, chanting:
"I consecrate and cleanse this water that it may be purified and fit to dwell within the sacred Circle of Stones. In the name of the Mother Goddess and the Father God, I consecrate this water".
As you do this, visualize your knife blasting away all the negativity from the water. The salt is next touched with the point of the knife while chanting:
"I bless this salt that it may be fit to dwell within the sacred Circle of Stones. In the name of the Mother Goddess and the Father God, I bless this salt".
Now stand facing North, at the edge of the marked circle. Hold your knife point outwards at waist level. Walk slowly around the circle's perimeter clockwise, your feet just inside the stones (or cord), charging it with your words and energy. Create the circle with the power flowing out of your knife's blade. As you walk, stretch the energy out until it forms a complete sphere around the working area, half above the ground, half below. As you do this chant:
"Here is the boundary of the Circle of Stones. Naught but love shall enter in, Naught but love shall emerge from within. Charge this by your powers, Old Ones!".
When you have reach back to the North point, place the knife on the altar. Take some salt and sprinkle it around the circle, beginning and ending in the North, moving clockwise. Next, carry the incense around the circle, and finally sprinkle water around the circle. Do more than carrying and walking; sense the substances purifying the circle. The Circle of Stones is now sealed.
Hold aloft the wand at the North point, at the edge of the circle, and chant:
"O Spirit of the North Stone, Ancient One of the North, I call You to attend this circle. Charge this by Your powers, Old Ones!".
As you say this, visualize a coppery dragon rising from the Earth in the Northern Quarter, over the stone. This is the elemental energy of Earth. When the Spirit is present -you'll feel it-, lower the wand, move to the East and raise it again, chanting:
"O Spirit of the East Stone, Ancient One of Air, I call You to attend this circle. Charge this by Your powers, Old Ones!".
Visualize the mighty golden dragon of Air energy flying freely above the stone. Lower the wand, move to the South and repeat the following with your upraised wand, visualizing a crimson Fire dragon:
"O Spirit of the South Stone, Ancient One of Fire, I call You to attend this circle. Charge this by Your powers, Old Ones!"
Finally, to the West, chant with your wand held aloft:
"O Spirit of the West Stone, Ancient One of Water, I call You to attend this circle. Charge this by Your powers, Old Ones!"
Visualize the undulating sea serpent, the essence of Water. The circle breathes and lives around you now. The spirits of the stones are present, as are the spirits of Dragonkind, feel their energies.
Visualize the circle glowing and growing in power. Stand still, sensing and sealing it completely, for a moment. The Circle of Stones is complete. The Mighty Dragon may now be called, and magick wrought.