However just out of interest would It do any harm to the tree If I was to use the Mist Spray, because as I said before some places say 'DO NOT use' whereas others tell you Its great and can be used.
In general I can't think of too many reasons not to mist if you wish. My point was that misting is not terribly effective in helping raise humidity levels which is a problem for indoor growers.
Trees receive moisture from rain and dew when they are outside, when I water I do so through the canopy. So wetting the foliage of most trees is not a problem and can be a benefit. There may be some species that don't like to have their foliage misted but to my knowledge Chinese Elm is not one of them. Just be aware of the possibility of Black Spot on new foliage and I don't see any problem.
As to you're question on the amount of water I use I wouldn't say I water thoroughly or in small amounts. What I tend to do Is just push my finger into the soil and depending on how dry/moist it is further down I will water accordingly.
I suspected as much when you wrote that you watered it daily. Try this instead, rather than adjust the level of watering, adjust the timing of your watering. In other words always saturate the soil and then wait appropriately before doing so again. This might be as little as one day or two or three before it requires water again. After a while you will get into a rhythm and this will be easy.
Get a thin dowel, skewer or chopstick and insert it into the soil deeply. Every day remove the skewer and hold it to your cheek, you will readily discern if the tree needs water. Check out the sticky threads for this sort of information and make sure to see the one on soil/medium as this will be of interest to you when you decide to re-pot.
It's January where I live so the tree doesn't need quite so much water.
Funny thing, it's January here too.
Sorry I couldn't resist. Good luck with the Elm, it's good to see someone with something other than a Juniper this time of year.