When it comes to applying polishing compound, the rule is 'little and often'.
Too much compound will reduce the effectiveness of the cutting action and the surface will become too greasy (often seen as a black slick of compound appearing on the surface).
Apply compound to the wheel for 1/2 to 1 second. Any more is just a waste of compound.

Home made polishing compound from jeweler's rouge, mineral oil and used soap bars. ¹⁾
Finished paste below was placed in an old cut down coffee can.