Yes, and there are many people who do this. You could just buy some raw flakes of shellac and mix them with denatured alcohol. Alternately, you could follow this recipe, which is based on a mixture of mineral oil and beeswax.
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Most stain is applied with a brush, a roller, or spraying. The manufacturer's instructions will advise the best method to suit your chosen stain.
Your wood must be clean and dry. That means all dirt and residual paint should be removed by washing and scraping. If you want a smoother surface, you can sand the wood, which helps remove dirt and...