Hold the compass in your hand. And you'll have to hold it quite flat, so that the compass needle can turn. Then turn yourself, your hand, the entire compass, just make sure the compass housing doesn't turn, and turn it until the compass needle is aligned with the lines inside the compass housing.

The directive property of a bar magnet has proved useful for mankind over ages. A practical device based on this property is magnetic compass. The compass consist of a metal needle pivoted as it's centre and free to a horizontal plane. The needle is fitted to a horizontal box having a glass cover . the compass also has a dial with direction marked on it. In order to locate the direction at a place the compass is placed away from any other magnet or iron pieces, or any current carrying wires. The compass needle will then point along the north , south direction at that place. The first compass is invented by a Chinese traveler in 12th century. Before this Chinese sailor use magnetite needles for navigation on ship . The travelers used find direction by freely suspending a natural magnet ( Which they always carried with them) With a thread .