Is it good to soak the wood before you start smoking?

How do you go about grilling steaks with wood chips? I have always soaked them and throw them on the hot coals just before I put the steaks on but I hate how it always cools my fire down.

Foil bomb. Make a pouch with foil, fill with chips and fold to seal then poke a bunch of holes in one side with a sharpened pencil or phillips head to release the smoke, toss on coals.
 
brother, soaking wood is both a waste of time and perfectly good water. Throw some chunks on lit coals and get smoke. Soaking IMHO is an urban legend similar to ghosts or bigfoot :-D
 
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