This is easy...dry dog food, roasted peanuts in the shell, roasted cashews. For placement...where you normally see the squirrels moving about. Place the trap against a wall(with the trigger/door wires facing out...assuming you have a Havahart trap). You might catch a few birds with this setup by accident if it's placed outdoors. Wear leather gloves when handling the trap with a squirrel inside.
If it's a 2-door Havahart box trap, keep one door closed - on the inside closed door smear some peanut butter. Set trap at base of a tree near where you notice the squirrels. Be sure to check trap often as a trapped squirrel can tear a trap up!
Food that they recognize is best. If your neighbors feed them peanuts in the shell, then that's what will work best. I have been feeding squirrels pecans in the shell. Now they get upset if I try and feed them peanuts. They hang on my door frame or stand on my doormat waiting for pecans. They come in my back door and take them out of my hand.
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