Actually I've used all 4 methods at one time or another.
1) Decals - always apply decals to a gloss coat finish such as Future Floor Polish or any other gloss coat. Use both decal Sol and Set solutions to ensure that the decals conture to the surface. And finally protect and seal with a dullcote.
2) Spray - the best way to spray a marking is to use a template of the insignia you wish to spray (such as stars). Be sure to spray in very light coats to prevent runs.
3) Rub On or Dry Transfers - easiest of the bunch if you can find what you are looking for. No explanation really needed ... just rub em on
4) Hand Painted - probably the hardest of the bunch. Depending on what the end result is to be I mask the area off or use a template once again except for very small areas that require a smooth hand.
Added this one to the list
5) Custom Decals - Create your own graphic on your computer to the size you want and have it printed on decal paper using a lazer printer. Follow the same procedure above for decal application.
Happy Modelling and God Bless
Robert