Choose a lipstick pencil that is creamy and rich. A great one is the NARS Velvet Matte Lip Pencil Bahama. Sharpen lipstick pencil. This will make your lines more precise and remove bacteria from the pencil. Outline lips for results. Depending on the size of your lips – you can create the – illusion of bigger or smaller lips. This can be done by drawing the line just inside or just outside of the natural curve.

More here: http://www.stillagirl.com/2007/07/29/beauty-reviews-how-to-use-a-lipstick-pencil/