Things You'll Need
Circular knitting loom
2 skeins of yarn, different colors
Knitting loom hook tool
Plastic yarn needle
Loom knitting projects are ideal to work on while you are watching television, chatting with friends or just trying to relax because they do not require much effort or attention on your part. You can add another color to your loom projects without much extra work, and the results are great. Once you learn to add another color to your loom knitting, you can make as many stripes as you want, and you can also make the stripes out of multiple colors.
Make a slip knot with your main color of yarn, leaving a 6-inch tail. Put the slip knot over the anchor peg and gently tighten the knot over the peg. Pull the yarn to the inside of the circle straight in from the anchor peg. Wrap the yarn around the first peg to the left of the anchor peg so the yarn goes all the way around the peg, and then wrap the yarn around the next peg and so on until each peg on the loom is wrapped with yarn. If you look at the outside of the loom, you should see yarn going around each peg. From the inside of the loom, you should see yarn crossing each peg.
Push the first row of yarn down toward the bottoms of the pegs, and go all the way around the circle again so that each peg has two rows of yarn loops on it.
Knit off the higher row by inserting your hook tool through the lower loop and lifting it over the upper loop and off the peg. Repeat this step for each of the pegs on the loom until you have gone all the way around the circle. After you finish this step, each peg should have just one loop around it.
Reload the pegs with another row of loops and then knit off again. Repeat this process until you have as much knitted as you want for the first color. Cut the main yarn about 6 inches away from the loom and let the end of the yarn dangle.
Make a slip knot with the contrasting color, leaving about a 6-inch tail. Wrap the contrasting color around all the peg as a second row above the remaining row of your main color of yarn. When you have finished wrapping the contrasting color row, knit off the main color, and you will be left with only the contrasting color. Continue knitting with the contrasting color until you want to switch back to the main color. Remember to always leave a 6-inch tail of yarn when you switch colors.
Weave the 6-inch tails into the body of the knitting when you have finished knitting. To do this, thread the tail onto a yarn needle, and weave the tail into the knitting, following the stitches so the tail is not obvious. Weave for 5 or 6 inches, and then trim the yarn on the wrong side of the knitting.
You can also knit with two colors at the same time by wrapping two different strands of yarn around the pegs at the same time and knitting off the two strands at the same time. The knitting is thicker when you do this, which works well for hats and scarves.