If you are using the baitloop for something else (chunk of roe, or prawn, etc) then it is ok to tie a piece of wool above the hook eye and have it drape over the bait/hook. My technique for doiing this is to pull a thin strand of wool of the main piece of wool, about 1/8 the thickness of the wool, and cut off a piece 3 inches or so. So now you have a thin piece of wool in your hand. Now I tie it to the line using an overhand knot. Nothing fancy. Now slide the wook down the line above your bait. Fluff the wool out and break it apart and trim it so it doesnèt go past the bend of the hook.
Sometimes I do this with white wool over a chunk or roe, or roe sack, or single plastic egg. You can even tie 2 or 3 pieces of wool to the line and slide them all down for an interesting look.
If Im not using the bait loop I normally just put the wool in the bait loop. A lot quicker. Try out color combos of wool in your bait loop too like. I always trim my bait loop wool ball to a nice round small egg shape. Experiment with different colors, see what other anglers are using and ask questions, before you know it youll be a pro at catching fish on just wool!