Draw a circle
Mark the center point
Draw a vertical line through the center
Draw a horizontal line through the center
Add two diagonal lines through the center
Extend each line to the circle edge
Draw longer points for north, south, east, and west
Draw shorter points for the diagonal directions
Add arrow-like shapes to each point
Label the directions N, E, S, and W
Add NE, SE, SW, and NW if desired
Darken the outline
Erase extra construction lines
Add decorative details if desired