I will give you my unprofessional view on fragging. Basically any coral can be fragged, it is just a question if you have the guts to do it. Amenomes usually arent, they usually divide on their own if you are lucky enough. I will give you my general knowledge of the classes of corals.
SPS: These are the easiest as there is not real "meaty" flesh to cut and deal with. You basically just break off a chunk and like magic you have a frag. Most people will trade/sell frags that are 1-2" in height, best tool for this is some sort of cutter (bolt, wire, etc).
LPS: These I think are the trickiest because you have the flesh to deal with. Maybe people say it is not a scary as you think, but I am not about to lose my huge anchor coral just to frag it

. What you would do here is cut the hard skeleton (again with cutters or hammer/chisle) and then you have to carefully cut the connecting tissue. Another option is to cut the skeleton and separate the 2 pieces while the flesh is still attached, then either put it in enough tension that the animal will seperate on its own over time, or I have heard of putting a rock on the flesh to speed it up. Again I am too chicken to do this, but I have heard it can be done. The easiest of the LPSs to frag are the branching kinds (torch, frogspawn, etc). These you just break off the branch, much like SPS.
Softies: These arent too bad, but a pain in the butt if you want to glue them to something. It is pretty easy to superglue/epoxy the hard skeletons to rock, but soft stuff is tough. Again here you can cut a piece off of a coral (colt, leather, etc) and let it grow into a new coral, or some, like xenia especially, will multiply on its own and spread around your tank. In that case you just put some loose rocks next to them, let them grow onto it, then you can trade/sell the rock as a frag.
As far as how you know it is ready for fragging, basically it is up to you. SPS can be regularly "trimmed" but of course you dont want to prune it too much or it will look stupid. Very similar to pruning plants, cut it down to where you like it and use the "cuttings" to create new plants/corals. Many people set up separate tanks of 10 or 20 or 50 gal size as
frag tanks, just to keep track of the little pieces. Not only is there the added bonus of creating new corals without removing anything from the ocean, but it also can turn into a little money maker, especially with nice SPS colonies. Hope that helped a little, but if you do a search on any message board you will find lots of people discussing frags. And please, anyone else correct/add to my comments

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