For this method, you need Vaseline, eyeshadow, lip gloss or lipstick, makeup brush, and a toothpick.  You want to get eyeshadow with colors that include dark blue, light blue, light brown, dark brown, red, dark pink/peach and yellow. Dark red lip gloss or lipstick works well for the blood. Lip gloss will give your wound a shinier, more fluid look than lipstick. Lipstick will work perfectly as dried blood. You can also use fake blood at the end to add an extra touch. The thicker the layer, the more swollen the wound will look.  Blend out the edges so that it looks less like a clot of Vaseline and more natural. This method with Vaseline is better for smaller wounds around your hands or arms.

Summary:
Gather everything you need. Apply a layer of Vaseline to the area you want to use to create the wound.