To create a stencil like the one above good tools and effects to use are; Desaturation, Levels, Brightness & Contrast, and the Graphic Pen or Stamp Filters. I have found that the key issue with creating stencils from photos is the suitability of the original image. You will probably need to try the different effects above in different orders and strengths until you achieve the look you are after. Differing from the video I would use the paintbrush only towards the end of the process to neaten edges and change specific areas.
Video by Cutnspray