Put your Rainbow Loom so that the pegs are aligned and the arrow is facing you. The base part should be 3 rows up so the pencil grip can squeeze through the bottom of it.
Now put one band twisted in a figure 8 from the right corner peg to the peg diagonal to it do it. Repeat the same step starting from the second peg to the peg diagonal to it like in the picture.
As seen in the picture go horizontally then vertically until you are back to where you started remember to use the figure 8's.
Now push the first layer down and place another layer of bands on top in the exact same order and place, but don't twist the bands put them on normally. Now it's hooking time.
Hook the bottom band and pull it over the peg; go to the next peg but now take the next band off too, do the same to the rest go in order all around until you are back to the start.
Take the remaining band at the start, and pull it over the peg.
Repeat steps 4-6 until you have your desired length. Be patient!
Slowly one by one, take off the bands from the loom, starting from the corner peg. Make sure you hold all the bands tight so they don't slip, then pull the grip away from the loom.
Slip your pencil through the grip until it pokes out the other end. Put the loops that you just took of the loom and put them on the pencil. CONGRATULATIONS! You just made your own pencil grip!