Stitch holder - very basic questions

[Mama2Chloe]

Hello- first time using a stitch holder. So I have 112 stitches on size 6" needles on circulars. I knit 28 stitches and need to put those on a stitch holder. I've never done this before --

I'm thinking of --- using my other circular cable and a size 5 needle and a cap. Cap end of circular, use #5 needle to pick off the 28 stitches. Unscrew needle and put a cap on that - so the 28 are on the cable capped off on both ends. Right?

Ummm, what about how my yarn is coming out of that 28th stitch? Per the directions, I'm to work with my remaining stitches in rows (no longer in the round). I cannot imagine that I'm supposed to tie off and start yarn again. So I guess I'm supposed to just keep using that yarn as it is from the 28th stitch to start my row stitching?

So from my 2nd paragraph above, I'm looking for confirmation on what I'm doing. I don't have an "official" stitch holder so I'm making do with what I have (let me know if there is a better way - ?).
From my 3rd paragraph - am I doing this right?

Thanks very much for your help:happydancing:. Funny how the simplest things make you wonder - I just don't want to have to rip stitches later....