κόκκινη κλωστή δεμένη...

What is the meaning of this commonly seen statement? I know it is connected with the telling of tales but though the lexicon gives it, I don't understand exactly what is going on:-

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Spinning wheel with a red thread
Spun and tied around its head
Kick it now and make it spin
Let the tale at once begin

What a succinct and easily comprehensible answer! Thanks, 'Man...:)

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Spinning Wheel - Blood, Sweat & Tears


Just let it shine within your mind
And show you the colors that are real

Someone is waiting just for you
Spinnin' wheel, spinnin' true
Drop all your troubles by the riverside
Catch a painted pony on the spinning wheel ride