Step 1: Cut and Glue the Ends of the Cord
Put a small amount of glue on your fingertips, and twirl the cut ends of the cord back and forth to cover the first inch or so with glue. Let the ends dry before proceeding.
Gluing the ends works better than melting in this case, because the glue makes a short section of the cord stiff, and that makes it easier to weave the end in and out as you create the knot.
Step 2: Make the First Two Main Loops
Now bring the long end over the loop you just made, forming a second loop (and a shape that looks kind of like a pretzel). The left loop of the pretzel will become the second main loop.
Step 3: Start Weaving
Pull the cord almost all the way through, and stop when you still have a loop on the bottom. This loop becomes the third main loop.
Step 4: Make the Fourth Main Loop
Pull the long end through until you have a loop left at the top. This becomes the fourth main loop.
Step 5: Weave a Little More
Step 6: Back Where We Started
Pull the long end through until you have a small loop left on the bottom... and this loop becomes the fifth and final main loop.
Step 7: A Little More Weaving
Step 8: Tighten Everything Up
Two wraps will make a pendant that is about an inch and a half across (3.8 cm), and three wraps will make a pendant that is about 2 inches across (5 cm). However, the more wraps you have, the less-stable the pendant becomes, because the outside loops are larger and aren't supported as well by the cord weaving in and out of them.
I've found that four wraps is just too many, and the outer wraps no longer want to stay where you put them. If you want a more complex look with more wraps, it works a lot better to use micro cord. Check out the next step for a micro cord variation.
Regardless of the size and number of wraps, you don't want to leave a large hole in the middle (because the pendant won't be as stable), so tighten it up when you're through by pulling all the loops in turn until you have a nice, stable pendant.
Step 9: Micro Cord Pendant
Step 10: Fuse the Ends
Flip your pendant over to the back side. You'll notice that you can't just fuse the two ends together, because you'll be missing a wrap on one of the loops. So, complete the wrap by pushing the long cord over to the left, keeping it on the inside of the previous wrap, where it should be. Carefully fuse it where it meets the short end, using a lit match. Now cut off the extra cord from the short end. Carefully melt the end of the long cord, and press the two cut ends together to fuse them permanently.