I was taught a slight modification to this for mil-spec splices:
At step 3, strip the inch, then divide into 2 pieces, poke one half through the hole and wrap the wire to the left of the hole. Take the other half over the wire, wrap ccw to the right of the whole.
This was supposed to make a very strong mechanical connection that is not depending on the solder for strength.
Mind I must admit, I rarely take the time to do all this.
Normally I would just wrap one wire around the other.
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Just a note, in automotive apps, they do not recommend soldering. The vibration of the machine can fatigue the wire just at the start of the place where the soldering is done. You have soft wire coming to a very hard spot. As the wire wiggles, that spot fatigues. Butt splices are preferred. Heat shrink butt splices are more preferred:
200pcs Heat Shrink Butt Connectors Terminals, Eventronic Insulated Waterproof Marine Automotive Copper Wire Electrical Kits (3 Colors 3 Sizes): Amazon.com: Industrial & Scientific