Operate Direction Suggestion:
Most people used to a 3-4 step process with embroidery applique in the hoop. For embroidery applique follows these steps:
For one applique it goes from step 1 to step 3. And for the second applique it repeats the same steps. Same for other parts of applique.
Step 1: Stitching outline -- running stitch(guide line)
Set stitching line for all applique parts. As soon as the stitch has gone 1st part you place suitable fabric down the guiding line.
Step 2: Placement stitch(which attaches applique to base fabric)
This is straight stitches to attach applique to base fabric. Then you cut and trim the fabric around the stitching line. Try to trim as close as to the line. No more than 1mm.
Step 3: Tacking stitch
It holds the applique fabric in place better. In some simple designs there's no this step.
*** All above will be covered by step 3 embroidery. So the first 3 steps' stitches will be invisible.
Finishing stitch -- Cover satin stitch, filled stitch, etc.
The color and operation may vary with different file formats or machines.