Both of these guys gave you some great info, here is another version using basically the same techinques.
If I were doing a patch, the first thing I want to do is cut the bad part out of the panel on the car. Let's say, the wheel arch is rusted on you car so you want to replace all around the wheel arch and out onto the panel five or six inches. I am NOT saying this is how far you would go, Willies covered how far well. I am just talking about how I would trim.
With the wheel arch and a few inches of the old panel removed. The wheel house would be cleaned up well, hammered and dollied on the edge so the mateing surface under the lip is as nice as it will be. I would then decide exacty how far I am going to go up and out. Trim the patch to that size, being sure NOT to cut less than I have already trimmed from the old panel (you only do that once

). I then fit the patch up to the wheel house and clamp it as it will be when it is welded. This is VERY important, you must clamp it in WHERE IT WILL BE WELDED, the butt weld line has to be precise.
With the patch clamped in place I use a sharp scriber and scribe a line along that patch panel into the old panel PERFECTLY tight up against the patch panel. Then remove the patch and cut up to an inch or so of the line with a "minimal distorting" tool like a die grinder with a cut off wheel, an air saw, or nibblers or electric sheer. After that I take right hand shears and cut a perfect cut right on that scribe line from right to left just starting the cut anywhere I can by going up at an angle thru the inch I am cutting off up to the line. Then I use a left hand shear and come from the left to right starting on that line already cut and trimming off the other side of the one inch I left when I started my cut from the first right to left cut. In other words there is no reason to start from the end or drill a hole or something like that.
This will leave you a near flawless seam. I will use a file to make it flawless. I weld these seams with a jewelers torch with .023 Mig wire for filler rod, that is how close you can get that butt weld seam.