The best place to start the stitch is at the top and to follow around the square shape to form the central hole. You can count the holes in the fabric to get the stitch even. Bring your needle up at 1 and down at 2 to create a diagonal stitch (2 is the centre of the hole), up again at 3 and down again at 2. You carry on working the stitch around the square, by bringing the needle up at 4, 5, 6, 7 and 8 and then down at 2 each time. Then bring the needle up at 9 down at 2 and bring the needle out again at 8 to start the next stitch in the row if working a block of stitches. Pull the stitches tight each time to form the hole. You can also use a stiletto to push the threads apart to make the hole more obvious.
Finished Algerian Eye Stitch
Algerian Eye Stitch Band