I don't use disguises. I'm a battlespy.
Disguises are for pussies; I only use the cloak to get away when I need to.
Getting away is for pussies, face your death like a man. Ambassador is too, spies =/= snipers, your revolver is faster and does more damage.
Tips:
Disguise and cloak to get somewhere unseen. Then when nobody is around, unclock and come out. For example I like being a sniper disguise because they have an excuse to stand still.
Finding a target: From your spot, look around. Look for:
-An enemy busy with another target, preferably a heavy, not a scout though, because the scout would run behind the enemy, they turn around and see you.
-Backs. If there is a squad of soldiers firing rockets at a sentry, easy kills.
-snipers. Although they aren't useful, they still get you points.
-Unattended sentries. Once you get fairly decent at spy you can attempt to backstab and sap quickly, or the other way around.
And while on the subject of TF2, if your enemy is a pusillanimous individual and had a sentry base set up at their spawn on KOTH_Harvest, just stand by the peak of the roof, on the opposite side and shoot the sentry.
1 of 3 things will happen.
1: Your standing too far on the other side and die.
2: you stand a little too far and the sentry pushes you into a perfect area where bullets hit the edge of the roof, but you have a clear target
3:you are in a perfect spot where the sentry bullets hit the roof peak but not you.
WHY THIS WORKS: Sentries aim for your center, your gun is above your center.