To see only focus stories, the ones in green, simply choose Focus at the bottom of the feed list. If you want to see hidden stories, the ones in red, hit the “Show Hidden Stories” button at the top of the story list. This button only shows up when there are hidden stories, but you can use it on folders to find those hidden stories easily enough.
There are only feed subscription limitations in the free version. Notifications should work fine. Please post a screenshot if you still have questions!