The above method can be tried but in most cases this only provokes the puppy into further excitement to continue to bite. In fact, the basic rule of training young puppies is not to should while they exhibit bad behavior like climbing and biting. Thus, I'd suggest never to "yell" or shout at the dog while he tries to bite.
You first need to understand why do puppies bite? Puppies while teething tend to take objects in their mouth to soothe their aching teeth. Having known this reason now, you can now teach your puppy that while chewing is a good habbit, playing or biting with our skin is bad. Whenever your puppy tries to play with your hand, just stop playing with him and ignore him for a while. Come back and start playing with him and repeat this if he repeat this. This will make your puppy understand that what he does ( playing with your hand ) results in a bad outcome, ie your leaving the premises. He looses his playmate. As a puppy, he's going to absorb a lot things about whats good and whats bad.
As a puppy, a dog can learn very advance skills. You can teach him to sit, to lay down, to fetch, to roll, etc. If you want your dog to stop biting, then you need to keep him mentally stimulated. Train him to obey the above commands and he'll gradually forget biting. Always keep treats for him to chew ( healthy ones not full of preservatives ) and chew toys and encourage him to play with them by rewarding him. You reward him by loudly saying "good boy" and offering a good treat to devour!!
This is an era of positive enforcement of dog training and we don't encourage "grasping loose skin" as however done very carefully, this method is likely to hurt the puppy. Also your doing this will be perceived by the puppy as a further challenge and he's likely to come out with a more defensive mode and hence one is breeding another bad habit in the puppy.