As someone has said, the trick is mostly accomplished by double and triple drawing. (That is, picking up two or three cards from the top of the deck and making it look like you picked up only one.)
I’ll try to take you through the positions of the cards as he performs the trick.
When he first deals out the four cards, the 2 of hearts is really on the bottom, and he shows it there.
When he says, “I reverse the order of the packet”, he makes three moves:
He takes 3 cards from the bottom and puts them on top (the 2 is now second to bottom)
He takes 2 cards from the bottom and puts them on top (the 2 is now on top)
He takes 1 card from the bottom and puts it on top (the 2 is now second to top)
He then says “that would make the 2 of hearts on top.” Of course, it’s really second from the top, but he double draws to make it look like it’s on top.
He then puts the true top card on the bottom, and displays the fact that the 2 is now really on top.
Next, he says: “I take it and put it in the center”.
After he does this, the 2 of hearts is now second from the bottom.
He then triple draws to make it look like the 2 is on top. Then he sets the true top card down on the table (meaning the 2 is now second from the top), and double draws to make it appear that the 2 is on top.
He says: “I take it and put it on the bottom”
Now he’s moved the true top card to the bottom, so the 2 is actually on top. He picks it up and shows that it is on top.
Then he says “I take the 2 of hearts, I put it on the bottom, and it’s still on top.”
This time, when he said he was putting the top card (which was really the 2) on bottom he was actually slipping it above the bottom card, so the 2 is now the middle of the three cards in his hand. He then double draws to make it appear to be on top again.
“I take it, I put it on the table again, and it’s still on top”
As he says this, he takes the true top card and sets it on the table, so that the 2 really is on top. He then picks it up and shows it to be on top.
By the way, at this point, the two cards on the table are the kings, and the two cards in his hand are the 2 of hearts and the 10 of spades, with the 2 on top. But at this point he reverses the two cards in his hand (bringing the 10 to the top) and then slides them under the two cards on the table. Now the 10 is second from the bottom in his stack of four cards.
He then flips the top three cards, making it appear that he flipped only one, and shows you the 10. Thus, it appears that the 10 was on top, even though it’s actually the third from the top. He then flips all three back face down (meaning the 10 is still third from the top), and takes the true top card into his other hand (i.e., his right hand).
So now he has three cards in his left hand, and the 10 is the middle of the three. Then he flips the top two cards, again making it look like he flipped over only one, thus making it appear that the 10 is on top. He then flips the two cards back down, so the 10 is still in the middle of the three, and he takes the true top card into his other hand.
Now there are two cards in his left hand, and the 10 really is on top. Then he turns it over to show that it’s on top. Finally, as he says “and the fourth card is also a 10 of spades”, at which point he simply flicks the top of the two cards (the actual 10) into his palm. He just does it quickly enough that it looks like he might have dropped the bottom card into his palm, which is what he wants you to think.
He then puts the 10 on the bottom of the stack, so now the two kings are on top, followed by the 2, followed by the 10.
He then says “so in fact all four cards are all the same card, but they’re all 10 of spades.”
As he does this he first turns over the stack to show the 10 on the bottom (where it really is.) He then draws three cards from the bottom of the stack (making it look like he’d drawn a single card), and displays the bottom of these which is of course the 10. He then pulls the top of these off and sets it on top of the stack, drawing the other two out from underneath and again displaying the 10. He then puts the top of those two on top of the stack, and draws the bottom of those two (the 10) out from underneath, displaying it again and setting it on top.
The result of this is that he’s reversed the order of the four cards, so the 10 is now on top, followed by the 2, followed by the two kings (with the king of diamonds on top of the king of clubs.)
Now he pretends to draw one card from the bottom of the stack, but he’s actually drawing two cards from the middle of the stack. Thus, he’s taken out the 2 and the king of diamonds. He shows the king of diamonds, and sets the two cards on top. (Of course, he wants you to think that the king of diamonds was the only card he drew, and is thus now the top card, but actually it’s underneath the 2). Then he takes the top card (the 2) and sets it on the table. The remaining cards in his hand are the king of diamonds, the 10 of spades, and the king of clubs, in that order.
He then draws two cards from the bottom of the stack (the 10 of spades and the king of clubs), and shows you the bottom one of these (the king of clubs), again pretending it’s the only one he drew. He sets both on top of the stack, and then puts the top card (the 10) on the table.
Finally, he shows you the bottom card (the king of diamonds), sets it down, and shows the top card (the king of clubs.)
