Its been discussed many times before, so using the search function might get you much more than what I can offer.
But here goes. I like using clay, but I don't use the traditional method like the Japanese do. I use refractory clay as a quench resist and apply it more or less where I DON'T want hardened. In the USA, it sounds like Satanite refractory cement is whats available.
I draw on the blade on both sides identically with a marker and apply the clay in thin layers with a ice-cream stick, using a heat gun to help dry the layers on before adding more. This avoids the clay bubbling and cracking off if it is not dry before going into the forge. I ensure that there is at least 1/8th to 1/4inch thickness of clay solidly adhered to the blade before going to the forge. Many makers will suggest that you allow up to 24-48hours to ensure that the clay is properly dried on and won't fall off in the forge.
The blade will take significantly longer to heat up to the correct quenching temp due to the clay acting as an insulator. Don't worry, you will still be able to see the colour of the steel from underneath the clay - weird ... !
You can either full quench in oil or do an edge quench in oil. I don't use water as there is a major risk of cracking unless you have much more experience with it than I do. Remember to leave the blade in the quenchant medium longer than you usually do, as the area under the clay will retain heat for a long time.
Many minor factors will make a difference to how the hamon turns out. That will be for you to learn with experimentation.
The blade afterwards will develop significant markings from the clay and quench which don't necessarily represent what is going on deeper in the steel. There will be lines and zones that LOOK like the hamon area but it isn't. You need to do some regrinding after the quench to clean up all the scaled / decarburised surface and etch lightly to check out whats going on.
The late, great Bob Engnath had some valuable ideas on his ways to do the clay -
http://www.engnath.com Most of my ideas were adapted from his instructions on this site.
Hope this helps. Jason.