The Frist Stitch: Casting On and the E-Stitch
To start your first line of stitching you will need to perform a stitch called casting on. Casting on usually refers to the first line of stitching. To do the cast on stitch start with the slip knot you attached on the first peg. You'll notice you have a shorter end of thread and a longer end of thread. Take the longer end of thread into your left hand if you are right handed and your right hand if you are left handed. Now, there are several ways to do this next step, however, I have found the easiest way is to turn the loom on it's side so that the open ends are facing out. If you are right handed the pegs should be facing to the left and vice versa if you are left handed.
Now, starting with the first empty peg you are going to take your thread and put the thread under the peg, bring it around the peg so that it wraps one time, and back under the beg. You will have created a loop around the first empty peg. With your thumb move the loop about halfway down the peg while holding firm to the yarn strand. Now, repeat that loom on each peg all the way around until you come to the last peg (the peg just before the slip knot starter peg). Remember to move the loop halfway down the peg each time before moving to the next peg. You'll notice that you have created a line around the loom.
Repeat this stitch around the loom once more so that you have two loops on each peg. You will be stopping on the peg next to your starter peg. This will give two lines per peg.
With both lines complete continue to hold to the thread. Take the knitting hook into your opposite hand and remove the top thread line by bringing it over the second line and off of the peg. The thread is now secure and you can let it go. Repeat this all around the loom until you have one line on each peg.
Now repeat the steps you used to create the e-stitch around the loom making another second line. When the second line (two loops on each peg) then repeat the steps to hook the second loop over the first loop. Repeat these steps until you have four inches of knitting.