Looking at that tutorial, I use method one 99% of the time.
If you want to use method two, which I do if I want to resize all the letters at once, I would suggest creating an action that completes those steps for you and setting it up with a keyboard shortcut. It only takes a minute to set up and then saves you all that time having to go through the drop down menus for every letter thereafter.
I think I have mine set up as F9 or something. So I select the letter I want, hit F9 and it instantly creates a new layer for itself.
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