Serrated blades have a grind on one side of the blade. Only sharpen the grind side of the blade. Hold the sharpener at the angle that matches the original edge angle. Hold the knife with the edge away from you and the serrated side of the edge facing up. Set the tapered diamond sharpener in a serration so that you fill the indentation. Draw the sharpener towards the edge.
Japanese water stones – both natural and synthetic – are known for their superior sharpening performance, not only for Japanese tools, but also on their Western equivalents. The loosely bonded abrasive grit is washed out very quickly, as it blunts during the sharpening process; this exposes new, sharp, particles that can get to work on the blade. Water stones are lubricated only with water! Never use oil!
Once the burr is removed, it's time to test the sharpness with paper. Hold a piece of newspaper at about 45°, with a bit of tension, and slash lightly with each point of the blade. If it cuts through easily, your knife's sharp. Warner speedily lacerated his newspaper, but I of course struggled. There is an element of technique involved, he reassured me. 

To summarize, Shapton Glass 500, 1,000 and 2,000 is a good combination and if you would like to throw in the 4,000 grit stone in lieu of the 2,000 that is good as well. If your knives are very hard, ZDP 189 for example, this is a fantastic choice. (They are also excellent for tools, chisels etc. and they are the premier choice for many Straight Razor honers).
Whichever method you choose, be it a waterstone (also known as a whetstone), or a pull-through (either V-shaped or ceramic wheels) it's important to regularly hone your knife with a honing steel, which we'll also cover below. You'll be pleased to hear that you won't have to reach for the stones too regularly – once every two or three months should suffice. 
Unfortunately, the arrays of modern whetstone can be bewildering to the inexperienced sharpeners that so often times many of them end up with a crap or wrong decision on stone type for their utensils. The most difficult to determine is whether the whetstone is fake or fabricated with low quality of materials. To avoid this you can only go for the reliable brand of a whetstone.
Method 1: Use an Electric Sharpener. Quality electric sharpeners are an option, but I strongly discourage their use. First off, they remove a tremendous amount of material from your edge. Sharpen your knife a dozen times, and you've lost a good half-centimeter of width, throwing it off balance, and rendering any blade with a bolster (i.e. most high-end forged blades) useless. Secondly, even the best models provide only an adequate edge. If you don't mind replacing your knives every few years and are happy with the edge they give you, they'll do the trick. But a much better choice is to...
My first set of sharpening stones so I have nothing to compare them to. For $50, though, great price to get into the world of sharpening. Stones are great and easy to use. Was able to put hair shaving edges on knives. Took a couple of knives to feel comfortable and better with the process and how to sharpen, but the stones you get work great. Here's the secret though. Get the green leather stoping block as well. As great as the stone are, I have found that stroping the knife after the fact is what really brings out that razor edge. And after using the knife, stroping it again, will restore and keep it razor sharp. Hope you enjoy it as much as I am.