Right. When you wet sand, the finish will end up smooth but hazy. Next step is to buff with a wool pad and a good rubbing compound. The polish with a foam pad and a polishing compound. The finish will have an excellent shine now, but will have swirl marks. You have to get a swirl mark remover, and you might want to hand rub it out. Each one of these compounds is a lighter and lighter grit.
3M makes excellent products for this purpose, just go to a paint store to purchase. And if you don't have a multi-speed buffing tool, you can buy the pads to mount in an electric drill.
But if you've never done it before, have someone who has show you, because it's very easy to burn through the paint while buffing. However, since you're only removing swirl marks, that's not really an issue for you right now.
