I learned it in a previous post from Kimmie. Here is the quote from her post:
Twisted cord instructions:
Okay. First determine how many yards (or feet or whatever) of cord you want to wind up with and multiply that by 8.
So, for example, if you want to end up with 2 yards of cord, you multiply 2x8=16.
Take that number and pull that amount of yarn out of your skein. So, in my example, I'd pull out 16 YARDS of continuous yarn.
Fold that in half (now I have 8 yards).
Fold it in half again (now I have 4 yards).
Tie a knot at one end.
Secure the knotted end somewhere. Either have somebody who loves you dearly hold one end, or place it over a hook. It doesn't really matter how you secure it, but you just don't want that end to move.
Now, holding the other end, stand across the room from the secured end and twist, twist, twist, twist (yawn) twist, twist a whole bunch. Keep doing this until the yarn is quite twisted. You can do this more or less to your liking.
When you feel it has twisted enough, match up your end to the secured end and the cord should twist and double over itself. Sometimes at this point you have to kind of help it along to make it all even. Don't let go of your end or everything will untwist.
If you are happy with the way the cord (rope) looks, then tie both of the ends together in one bigger knot (the secured end & the end you were holding). Now you should have about a 2 yard cord.
I have felted the cords (as I did for the Booga Bag) or used them unfelted. Whatever you like!
Hopefully that made sense. After all that explaining, I wonder if Amy already has a video up or something that would make that even more clear.
I attached a pic of the bag...hopefully you can get an idea of what the handle looks like.