If someone requires to make a magnetic compass of their own, they would require:
Inorder to make a simple compass, magnetise the iron needle and set it in a way that it will rotate freely when we suspend it.
Steps involved in preparing a magnetic compass are :
(i) Take an iron needle which is to be magnetised.
(ii) Magnetise the iron needle using a bar magnet by continuously rubbing it with the magnet.
(iii) Insert the magnetised needle through a small piece of cork.
(iv) Let the cork float in water taken in a bowl or tie it through a string and hang. Make sure that the needle does not touch anything i.e, it is free to rotate.
(v) Rotate the cork, with the needle fixed inside it, in different directions. Note the direction in which the needle points when the cork is left to move freely without rotating (rest position).
You will observe that the needle indicates the North-South direction when it comes to rest as a freely suspended magnet points North-South direction.