First, make sure the area you’re working on is free from wax or dirt. Use rubbing alcohol to clean the chipped area.
Never use the brush that comes with the touch-up paint– it will just cause big, nasty globs and end up looking worse than the chip. Use a small artist’s grade brush and gently work your paint into the chip area. Wait for it to dry completely (at least an hour), then apply a little more to “fill the hole”. These steps alone will make your chip look a lot better. If you feel even braver, use a superfine grit sandpaper (1000), wet, wrapped around a small block. Go over the newly-painted chip very carefully until the “bump” gets minimized. Use one direction, not in a circular motion. Be very cautious here, you don’t want to sand down too far and breach the clearcoat. Check your work frequently as you go!
After you’re satisfied, use a high quality scratch remover and wax to bring back the shine. This process may take several attempts. Take you time and go slow, the results will be well worth your efforts.
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