Step 3: Use
Here's me soldering, with the iron held fast by my lovely new tool. It worked great!
As suggested in the comments by jiovine, it may be even better to use the opposite orientation, where the iron is pointed down and towards you. I tried this orientation in a dry run and I think I will probably use it that way instead of with the iron tip pointed up in future. (The hot bit is closer to Me that way, so a bit more care will be required.) It's a little tight because I didn't design my holder with this orientation in mind, so if I have to use it for larger pieces I'll probably have to modify the holder. But for small work it's just fine.