The stepped method works, but I don't like the appearance. I find the seams much less noticeable when they are random. I make sure they are spaced at least a few feet apart, and I try not to have any seams in the same spot even if it is several courses up. I waste more siding, but it is a nicer appearance.
I do the same, random. I keep the tape in the pouch and keep them at least 2' apart. Don't forget to cut for expansions if you run a cut end in the field.
Also. adjacent pieces should overlap so the the overlapping sections will be closer to end of the wall from which you want the junction to be least visible - makes quite a bit of difference.
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