1) Tie a slip knot in the end of your yarn.
2) Tighten this slip knot on your winding tool. I like to pull this slip knot tight in the hook of the crochet hook, or high up toward the end of the knitting needle, to keep it out of the way.
3) Hold your yarn against the winding tool with your thumb, and wrap it around the winding tool several times near the end as shown.
4) Continue to wrap yarn around these first clump of wound yarn, criss-crossing as you work from time to time as shown. This should feel just like winding a regular wrapped ball of yarn, only this ball of yarn has a winding tool poking out of it.
5) Continue in this fashion until all your yarn is wrapped, then tuck the end into the ball under a few strands to secure it.
6) Still holding that first bit of yarn between your thumb and the winding tool, gently ease the tool out of the ball.
7) All done! The end with the slip knot in it will now be the start of your next project, and yarn will pull from the center of the ball with ease!
courtesy of Lion Brand