Today I did my first latex bald cap application in quite some time. I've included a time-lapse video and the finished product below...
The first thing that I learned is that it is important to pull the cap as tightly as you can, otherwise the cap will pull when you stipple on the makeup. This unfortunately happened to me and I had to re-cut and glue down the edges. This was a trial run, so I had the time to do this. The second thing I was reminded of was the blending of the edges. Make sure to use a very thin layer of latex to blend the edges of the cap or you will have a visible boundary.
As I do more bald caps I will update this entry. I will say this, take your time while cutting the cap. Don't be afraid to pull tightly to create the perfect fit. Pay attention to the edges. Too much latex on the edges might create a more noticeable seam. The trick is to both place the seam nearest to the hairline and use the thinnest, smallest amount of latex to blend the edges. The makeup is the easy part. I would suggest a light orange stipple to neutralize the blue hue created by the dark hair underneath the cap (if you are capping dark hair) and then use a shade slightly darker than your client's skin tone for the entire head.
Remember: have fun with it and use reference photos!