It is sort of like a purl (knitting into the back of a stitch) so I could see where you'd get confused.
On the side facing away from you, skip the first stitch and go in to the second loop from the right (pointed-end of the needle) to the left (back end of the needle). (Kind of how you enter a stitch to do a purl normally.) Then wrap your yarn as normal and pull it through.
Now, instead of pulling the old stitches off the left needle, first you want to work the first stitch on the left needle (the one right before the stitch you just knit through the back loop) as a regular knit stitch.
Then just pull both of those stitches off the left needle. Done.