Hi SunSpotBaby,
You stand in the middle of the room you want to find the directions.
Where you are facing doesn't matter.
Now, hold the compass at heart level. Turn the bezel so that the red head of the needle "goes in the shed" as they say in boy scouts -inside the wide hollow red arrow that moves with the bezel.
That is north. have a friend put a sticky note there on the wall for you.
While standing there and not moving the compass, South is the exact opposite (the back end of your needle is pointing to the S and in the direction of south now. the E and W directions on the compass show those as well.
Shawn