One of my most Frequently Asked Questions (FAQ's) for making my purses is, "How do you make the straps?"
I made a video on You Tube showing how to make an i-cord strap.
KNIT AN I-CORD VIDEO
This can be found to the left under YouTube videos also.
Great example of an i-cord strap after felting and attaching it to the bag via grommets.
Another style of strap is a flat strap from side to side. Knitting each row right side and wrong side until the strap is 1/3 longer than you want the finished piece (if you're felting it). Also, you'll need to make it about 1/4 wider than you want the finished piece to allow for side-to-side shrinkage. If you like make it even narrower and pick up stitches all along the length of the handle on either side and knit a row in a contrasting color. This is the technique I used in the purse at the top of my blog.
Here are a few close up pics of handles I've made in that fashion. Notice the contrasting or highlighting colors.
These were finished by knitting one row with the contrasting color, then picking up the first row while casting off, a "Tuck" row.