Hey mega, Bottom feeding is the way to go with seedlings. Your not doing anything wrong there
As for the question on the the correct amount of water? I actually can't give you a set answer on that because we would have to be roommates for me to confirm that ha. I can tell you the correct way of knowing though, you don't need to water on a set schedule, I mean you can.. But its better to take a look, see if the soil/pellet has a good amount of moisture still, if it does, don't water.. Excess water with seedlings can do all sorts of bad things to them, and large plants as well, that in most cases end in plant death, root rot, damping off, fungal diseases, to name a few. The most common mistake new growers make (notice I'm not saying IMO cause I know this is fact lol) is simply.. Overwatering. Always remember that.
Short story on topic, My dad will be coming over this spring so we can install a big drip system for all my plants, he asked me if I wanted to buy the timer for it so I didn't have to do a thing and the plants would get automatically watered every so often, I said nope. I'll always be checking the soil before I turn that baby on
Transplant? I would wait until your first set of leaves are of pretty good size, or if the roots are coming out the bottom.. time to pot up!
Hope that helps a bit.
Brandon