The essential thing is that the dirt and grease is broken up. Step 4 will remove most of the gunk. WD-40 is generally not recommended as a cleaner since it leaves a sticky, dust attracting film on the bearings. Note, however, that some people swear by WD-40. It has become somewhat of a heavily-debated topic, so experiment with it if you'd like.
Ultrasonic cleaners are ideal for cleaning bearings.
If you have access to one, you can clean your bearings en mass and avoid getting your hands dirty. Now rinse out your bearings with hot, soapy water to make sure you clear out all the solvent. You now have some clean bearings. If they're truly clean they ought to spin real fast. Use a hair dryer to make sure that all traces of water are gone.