67customs has a good way of going about it. I used to do mobile paint repair on car lots for a few years while in school. What we used for rock chips was lightly sanding any rust in the chip then applying a small amount of primer. The next step is up to you, but for most cars we would mix a small bottle of single stage car paint, thinner, and about a few drops of wet look hardener. Since you already have the paint and clear instead, I would just apply the paint first to just under the line and then thin some clear coat and fill the chip just over the level of the chip. The idea of thinning the clear is as the thinner dries it actually levels out a bit. After it dries, I used a rubbing compound called clean cut which is a very fine grit compound and just buff the spot out by hand feeling it until it is level, and no wet sanding required.
Also, don't use a brush to apply the paint and clear. I used syringes to apply paint to the chips. Maybe you know someone who has to take insulin who would give you one as it's a big pack to buy at the drug store although they are pretty cheap. Once you have one, use some needle nose pliers on the tip and wiggle back and forth to break off the tip and safely dispose of it. This keeps you from accidentally injecting yourself with paint.
After you do that, suck just a small amount of the thinned paint or clear into the syringe (a little goes a long way) and then apply it to the chip. I find it's easier to hold it like a pencil with the plunger pressed against the meat of your hand to control the flow. Practice on some paper, wood, or something to get used to the flow. It definitely makes filling chips easier and with practice I was doing entire cars in 30mins.
For bigger sections where filling isn't an option, just sand around the chip with fine grit sandpaper to feather out the edges (you should be able to see all the layers kind of looking like wood grain), mask off the area, spray a light coat of primer and sand smooth then apply your paint and clear, but just as soon as you are done with your clear coat, dump what is left in the cup but don't clean it out and instead fill the cup with dupont chroma clear blender, remove the masking from the area and spray from the edges of where you sprayed the clear coat with long sweeps out to the body around the masked off area. What this does is level out the clear and blend it in with the rest of the clear coat on the body. Most of the time, after it dries you won't even need to do any buffing or sanding.
