I've been doing this style of finish for ages. I do it basically the way Smart Dog described above with the homemade rubbing pad, but I use mineral oil as my lube. One of the things you are doing is leveling the surface, another is taking out swirl marks, and it takes almost no pressure to do so as the rottenstone will cut without you manhandling it. I rub in overlapping circles. You must allow the finish to completely dry before doing the process. If you see any sign of sticky gummy finish building under the pad - stop - allow more drying time then try again. The resulting finish will be a pleasing sateen.
Last week I began a stock using Chambers oil - after the first heavy coat I allowed it to completely dry (in this case a couple of days), since then I have given the stock a couple of very thin coats using only my finger to rub on the oil a few square inches at a time. The last couple of coats will be rubbed down using the pad and rottenstone. Generally it takes 7-10 oil coats to obtain a decent sateen finish, it takes about a month, or more, with all the drying time between coats. Once it is all done give the stock a good waxing.
dave