Loom Knitters Circle Magazine

Step by Step Instructions
Step 1: Place working yarn, in front the peg and below the loop on the peg.
Step 2: Insert knitting tool from top down (behind the loop on the peg). Catch the working yarn with the tool, thus forming a loop.
Step 3: Hold the newly formed loop (from Step 2)
Step 4: Take the loop that was originally on the peg, off the peg.
Step 5: Place the loop you are holding (from step 3) on the peg. Pull on the working yarn to tighten the stitch.
See it in action...

How it Looks...