If I use the transform effect. Do I then combine the move tool and scale tool. So first move the object and than scale it down. And do it for every object.
To do a transform effect, make your object and with it selected, go to Effect > Distort & Transform > Transform... In the Transform Effect dialog, go to the bottom to turn on Preview and set the number of copies to make. Then adjust the sliders to scale and move the copies. Use the other options as needed.