I finally just looked up what is Magic Looping and come to find out, I've been doing my own version of it for weeks! I can't afford to go purchase every size needle and every length available and in a moment of desperation I discovered a method that worked. It's definitely a great method if you like circs and if you're frugal.
Here's the "right" way to do it-http://www.knittinghelp.com/videos/advanced-techniques
Here's my way-- I just pull the cable through between stitches so I have a loop between some stitches, I work the stitches like normal until it starts to pull, then I pull the cable through again. It helps if you pull it through closest to the side where you are pulling your yarn from (for me that's the right side). Because the placement of the cable is constantly changing, it doesn't stretch the stitches or anything.