THE CUT SHOULD BE MADE JUST ABOVE THE LINE WHERE THE CAP MEETS THE WRAPPER (ON FIGURADOS ABOUT 3MM FROM THE POINT).
You must create an aperture broad enough to ensure an unobstructed draw whilst retaining enough of the cap to stop the wrapper from unravelling.
A number of devices compete for the role. The most popular is the single or double bladed guillotine. Alternatively there are pairs of special cigar scissors. Another is the punch cutter with a circular blade. It removes a section from the cap, which preserves the shape of the cigars head, although it cannot cut pointed ends. Do not remove the band for fear of damaging the wrapper.