Step 2: Wind the Toroid
You can find toroids in a few places. Old computer motherboards, XBOX and X360 motherboards have them (don't take them unless it's dead!). You can find toroids in computer power supplies, or you could buy them at your nearest RadioShack.
Take your two strands of wire, and twist the ends together. You don't have to do this, but it makes winding a little easier.
Thread the twisted end through the toroid, then take the other two ends (Not twisted together) and wind it once around the toroid. Don't twist the wires; make sure that two wires of the same color are not right next to each other.
Keep winding, making sure you wind the coils tight. It will still work if they are kind of loose, but it is better to have them tight.
Ideally, you want about 8-11 turns on your toroid. Even if you can fit more, don't put more on. Make sure the turns are spaced evenly around the toroid.
Once you wind around the whole toroid, cut off the extra wire, making sure you leave a couple of inches for soldering.
Strip some insulation off the wires, then take a wire from each side, making sure they are of the OPPOSITE COLOR. Twist them together, and then you're done with the toroid.