Start with a piece of paper on a smooth surface
Push the middle joint of your small finger into the paper, so that it acts like the point of a compass.
With the point of your finger still firmly on the paper, choose the size of your circle by moving the point of the pencil.
Place the tip of the pencil on the pencil on the paper loosely so that it will draw, but not stop the paper from moving.
Slowly move the paper so that it turns around the point of your finger. You MUST keep the point of the pencil in the same place. Continue turning the sheet until the circle is complete.
This is the circle I drew.