Yes, that's the proper way. If possible warm water.

I second w/Ben's advice, plus it's best to leave water in the container at least 24 hours..Toni

I'm wondering about this same issue -- I've got two lemon trees (one ancient Meyer [I inherited it in its planter and repotted it is the one I've been fighting scale on in another thread] and a new Pink Lemonade Dwarf) both in 20 gal ceramic pots with 4 good-size drain holes in the bottom. Their potting mix is a custom mix recco'd by my local nursery with a big wallop of the "water retention crystals". I've been watering them on the basis of stuffing my index finger into the dirt and when its dry down to the 2nd knuckle I water and I fill the containers (they have a 2" margin) until the water begins to run out of the bottom. Does this seem right?