Ammonia is the first thing that will show up. Next Nitrite will appear and finally Nitrate will appear. When you have Nitrate you know that the tank is cycled. Do a water change. It's best to cycle your rock, sand and damsels at the same time. If you are gonna add new things you'll go through the cycling process again.
To start the cycle in motion provide a source of ammonia...(un-cured LR/damsels/raw shrimp)...anything that will provide a source for ammonia to develope...After the ammonia rises look for nitrites to rise & ammonia to begin going down....after the nitrites peek look for nitrates to begin to rise....at this point ammonia should fall to 0...nitrites will continue to fall and should go to 0...nitrates will peek then fall to under a high of 10ppm...at that point the initial cycle should be complete and the system is on its way....
hope that helps(or even makes sense!! )
here is a site that pretty well explains the nitrogen cycle
<a href="http://www.reefcorner.com/Manual/nitrogen_cycle.htm" target="_blank">n cycle</a>
i think the best way to do it is with lr, ls, or the shrimp method and not with damsels