| Step 1: Using 2 strands of the yarn color 1, wind the yarn all the way around the loom in a single stitch. |
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| NOTE: Keep the yarn loose as you knit. Knit 6 rows and pull the first row back up and around the pegs (like making a brim on a hat). This will make the top edge of the purse. |
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| Step 2: Knit 6 more rows. |
| Step 3: Change to the yarn color 2 and knit 3 rows. |
| Step 4: Change back to the yarn color 1 and knit 3 rows. |
| Step 5: Change back to the yarn color 2 and knit 3 rows. |
| Step 6: Change to the natural yarn and knit 6 rows. |
| Step 7: Change to the yarn color 2 and knit 3 rows. |
| Step 8: Change to the yarn color 1 and knit 3 rows. |
| Step 9: Change to the yarn color 2 and knit 3 rows. |
| Step 10: Change to the yarn color 1 and knit 6 rows. |
| Step 11: To close up the bottom end of the purse, take the loops from one side of the loom and place them on the pegs on the other side of the loom. Knit these stitches over and crochet the last row off of the loom. |