Hands down the best paint is signpainters paint. It will run you about $40 a pint, but once you use it, you will ask yourself why you ever tried anything different.
I am no artist, but Clive at the museum does the stencilling for the museum. He uses a laundry pencil to mark the lettering, then paints them free hand. Don't skimp on the brush either. After a day, you can wash off the excess pencil marks.
I have also done it with the sponge when I was attached to the armoured corps. A little patience will go a long way. Don't try to do it all in a single coat.
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