You can fold your socks using three separate techniques. It's true: THREE ways to fold socks. The method you employ depends on your purpose and on the quality of your socks.
Now, these methods are intended for tall socks, not necessarily for ankle socks, which are difficult to fold because of their lack of necks. However, each of these methods can be modified slightly to incorporate socks with short necks.
Lay your socks on top of one another. Beginning at the toe of the sock, roll the socks up to their openings. Once you reach the top opening of the socks, open the top of the outside sock and pull it over the roll to contain it.
This method creates a complete look and it saves a lot of space. However, it quickly destroys the elastic of all-cotton socks.
The second method for sock folding is best for careful adults; it doesn't work very well for children or those who enjoy rummaging through their drawers in an attempt to locate items, as the socks easily become separated if they're disturbed. Although it's efficient with space and will not destroy the elastic of your socks, it's not necessarily the most convenient method for everyone.
Lay your socks on top of one another. Beginning at the to of the sock, roll the socks up together. That's it. Once you try this method, you'll see why this method isn't ideal for children or rummagers.
Lay your socks on top of one another. Fold the mouth of one of the socks around the other. This method keeps socks together well, but it can wear out the elastic quickly and it's not terribly space efficient.