The above suggestions are for machine quilting. The OP asked about hand quilting. The pounce pad will work but you need to use the ultimate pounce powder, the kind that stays until you wash or remove with an iron. The regular pounce chalk will rub off too easily and most of your marks will be gone, unless you mark as you go which is quite do-able, I have hand quilted many quilts that I marked as I went.
I believe the only pounce powder available in ultimate is the white, so if your quilt is light colored you will have to use the blue powder and then you will need to mark as you go. I have heard if you spray your chalk mark with cheap hairspray once applied to the quilt it will stay until you wash it out. I have not tried this myself but it certainly sounds like a good idea that would work.
Contrary to what the name of the product implies, you do not "pounce" the pounce pad over the stencil, you rub it over the stencil like rubbing an eraser over a chalkboard. You first "load" the pad with chalk by giving it a sharp rap against a hard surface with the cover on. Then you gently swipe or rub the pad over your stencil.
You can use any stencil, not just Pounce's own stencils but I have found stencils that have pointy bits tend to bend and snag on the pad sometimes. It is a bit of an annoyance and you just have to remember to go carefully over those parts of the stencil and try not to rub into the point. Hard to describe in the written word. Once you do it you will understand what I am talking about.
Pounce is a quick and easy product to work with. Much less time consuming then trying to trace your stencil with a water soluble pen. I have found that many of those pens points don't fit nicely in the stencil cut out.