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You can apply them dry, sort of dust on, mix with water, turps, mud all mannet of things
Well, yes and no. Here are some suggestions:
Mud: mix the pigment into Acrylic Gel (available in any good artist's supply store)
Streaking/rust/dust etc. Apply with Turpentine - not the rubbish you buy in a plastic bottle, but the small bottles of Windsor and Newton stuff - odorless, expensive, but a superb investment nevertheless.
Water? I don't recommend this at all - use something which will
BOND to the pigments, water certainly won't. You will be able to apply it in this manner, but it will simply 'lie' on the model's surface..Jim