"Sockets help"

When i am adding a socket to anything like the hand in the video, it shows up on the floor. is there any way that this can be fixed am i missing something in some setting somewhere. I followed a few tutorials on the internet the all seem to be setup in the same fashion. no matter what i do it looks like it only attaches to the root bone. please take a look at this video and let me know what i am doing wrong.