Much better way is the "devil horns" technique.
lifehacker.com/software/life-hacks/keep-headphone-wires-from-getting-tangled-152499.php
Works for any wires. Once complete you can scrunch up the cables as much as you like and they'll almost always untangle freely afterwards.
Devil horns ftw.
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Crap Little Monkey Deathstar, so good they built it twice, Sun 1 Mar 2009, 14:46,
Reply)
twists per loop...
I think that works because when you coil wires normally, you put a slight twist in per loop - because you're doing a figure 8 with the devil horns, these twists cancel out.
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TheAlmightyBeev, Sun 1 Mar 2009, 15:12,
Reply)