Step 2: Cross right over left
Step 3: Transfer to right hand
My technique: grab the original strand between index finger and curled middle finger. Then take the next strand by grabbing between curled index finger and thumb. This allows you, in the next step, to rock your hand forward and release the first strand.
Confusing? See the video below. I'll show you first how your hands will move (with nothing in them to braid), then on some scrap pieces of cloth. If it looks difficult, practice first! You will be doing this on the back of your own head.