Note: A Soul Trap weapon and access to a smithy and arcane enchanter are required. First, buy equal amounts of Iron Ingots, Leather Strips and Petty Soul Gems. Fill the Petty Soul Gems (by killing with the Soul Trap weapon), then go to a smithy. Create as many Iron Daggers as possible, then go to an arcane enchanter (there is one in Dragonsreach). Enchant all the daggers with the Petty Soul Gems (disenchant the Soul Trap weapon if reqiored), then go to a shop and sell the daggers. Depending on your barter skill, you will get about 170 gold per dagger in profit, and should level up quite a bit. Note: Smithy every three or four daggers; enchant every one or two daggers early on.