Polish and compound
Compound and polish are pretty much the same thing. The difference lies in their level of cut. A polish is designed to leave a nice and shiny finish, one that could be good enough for some people. A compound is just aimed at removing scratches at a controlled manner, with less focus on how the finish looks. A compound works faster, but also needs more finishing afterwards.
Buffing compound can be a question for 2 different things. Are you interested in how to work with a compound, or do you want to know how to refine the finish after working with a compound.
Working with a compound
Working with a compound is not different then a normal polish, but you might want to use a rotary when using a compound. A won’t as effective as a rotary and with its increased speed and heat-buildup, it will make the compound perform better.
Finishing after a compound
Finishing after using a compound can be done by using a fairly high cut polish. A compound leaves a rough finish. It will look okay, but it can be made to look a lot better. When your compound has a high cut, you would want to use a polish with a high cut. The high cut polish will leave a nicer finish then the compound, and in turn will smoothen the surface out with less risk of holograms. After this, you can step down to a medium polish and then a finishing polish.
The pad to use
Using a high cut polishing pad will help as well. There are microfiber cutting pads, wool pads and some foam cutting pads that can do the trick. In general it is always recommended to start with the least aggressive one and work your way up till you get the result you want. Although some claim that microfiber is always rougher then wool, this does not have to be the case. There are very fine microfiber cutting and/or polishing pads, and also very high cutting wool pads. Its best to check with your reseller or the manufacturer to determine what pad is best suited for your situation. Don’t forget to mention the polish you are using, seeing as that can make a big difference.