I use waterstones to sharpen my tools. There are dozens of methods, but here is mine which works very well for me.
I have a couple of King stones from a long time ago, which I now use to sharpen my kitchen knives. They are not very good stones, at least not as good as my Norton stones. I have found there to be a big difference from stone to stone. Norton are my favourite. I also tried a Sigma 10000 stone but my Norton 8000 was better so I returned it.
This is my equipment. I have a Norton 1000, 4000 and 8000 stone. I rarely use the 4000. You also need something to flatten the stones with- I use a DMT diamond plate. This is roughly equivalent to 220 on one side and 320 on the other. I use the Veritas Mk II honing guide- it's excellent.
That's all you need, although a grinder is sometimes necessary. I gave my bench grinder to a friend but I regret it when I need to change the bevel on a chisel or blade.
I use my diamond plate to change the bevel, or if there is a large nick. Then it's off to the 1000 stone. I hone with the 8000 stone. I use the honing guide for plane blades, but I do my chisels freehand now. It took a while to get the technique down, but it saves so much time when you learn to do it. Eventually I'll learn to freehand my plane blades too.
To touch up a blade, I use the 8000 stone only. It's similar to sanding wood- you go to the lowest grit necessary to smooth. Same with blades. If you don't need to use the 1000 stone, just use the 8000, but if there is a deeper nick, it is quicker to go to the 1000 stone or even the diamond plate, and then finish with the 8000 stone. Hope this makes sense. You don't need the intermediate grit stones as you are only honing a mm or so on the edge.
I am lucky to have a sink in my workshop, and my sharpening station is next to it. (It's an IKEA small wooden table.) I keep the stones in a plastic container full of water.
I haven't found it necessary to use a honing compound, but many people do. If I can get a nice shaving on something like birds eye maple or ice birch, then my blade is as sharp as I'll ever need it.
I wouldn't drive yourself crazy with sharpening, but I do believe that you'll get a better edge with waterstones than with your Tormek. I tried the Tormek and the results were nowhere near what I can get with the stones.