Step 2: Making the weaker magnet...
Now to make the weak magnet (it's unable to lift anything, but you can see that the magnetic field is there by using the compass. See the attached video).
1. Take the piece of steel off of the flame and, using the compass, point one end north and the other south.
2. Now hammer away while keeping the steel in that position. Hammer until the metal is cool.
Now you should have a weak permanent magnet.