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The dot counting method teaches children how to add numbers by visually representing them with dots. By touching and counting the dots on each number, kids can quickly add them together. As children become familiar with the concept, they can start mentally adding numbers by picking the larger number first and counting upwards. This method is especially useful for young children to practice addition and subtraction with larger numbers also. The tutorial demonstrates this by showing examples of adding simple numbers and gradually moving on to larger numbers through dot counting.