I don't know if its the right way, but its the way I have been doing it mostly successfully for years with a scissors type knurler.
I center the upper and lower arm so knurls are at 12 and 6 oclock, set loose, no contact with part. I then turn machine on, already have my carriage feed selected. Slowly tighten the clamp that pulls the 2 arms of scissors together till you are getting half decent impression, slop on lots of lube and hit the carriage feed and away we go. When done, turn spindle off, loosen clamp on scissors, go back to start, gently let the knurls contact starting position with spindle turning , you will feel the wheels drop into to previous impressions, slop on more lube, tighten the scissors and hit the carriage feed and away you go again. Repeat a third time if you need it to have deeper knurl.
Those bump style knurlers are bin material for me, I refuse to use them, very hard on spindle bearing, cross slide screw, a rather violent way of doing the job compared to the scissors type knurlers IMO.
michael