My favorite method to weave on looms that have pegs or nails, like the Potholder loom, or Lil Weaver looms from Dewberry Ridge (LINK), is to weave with the continuous Potholder loom weaving method.
Usually, when you weave a square on the potholder loom, or other small loom, using the potholder loom method, you will need to chain the edge to finish it.
BUT… that can really affect the finished size of tiny squares, when working on the little 2 or 3 1/2 or 4 inch size looms.
So! I have come up with a way of finishing the edges of the squares, while you weave them. Voila! No need to chain the edge!
Why would anyone want to weave on such tiny looms?
Well… they are so portable, you can take them anywhere,
AND… because weaving miniatures is so much fun 
)
Wee-woven-monster-and-kitty (c) Norteen Crone-Findlay
The Wee Woven monster in the photo above was woven using the Kitty pattern from my book: WEAVAGARUMI LINK
You can see the difference in size- The Weavagarumi Kitty is woven on the potholder loom (also from Dewberry Ridge POTHOLDER LOOM link )
and the Wee Woven Monster is woven on the 2 inch Lil Weaver. Fun!
Here’s the youtube video with the tutorial on how to make some ‘edge magic’!
) As well, there are instructions on how to work with the square and rectangular Lily Speed-O-Weave loom. And a whole lot more….
