Blacksmithing / Iron Forging
Iron Forging skill is used to make items out of iron ingots. You can sell the items you make to stores or players. To create an iron item you must have a Blacksmith Hammer in your backpack. Double-click on the hammer, and then select the stack of iron ingots you want to work on. 

This brings up a menu of the iron items you have enough material to make (in the stack you selected and any other stacks at the same inventory level), and that you have a high enough level in Iron Forging skill to make. The menu is sub-Categorized into weapons, armor, and tools. The number of iron ingots required is listed for each item. Double-click the item you want to try to create. 

Each item takes a different amount of time and has a different base chance of success. After the requisite time period, you’ll be told whether you’ve successfully created the item or wasted those resources. The odds of success are (Base %) plus 1 /2 of your skill level plus 1 /6 of your Strength. Iron Forging eventually wears out your blacksmith hammer. 

Single-click on the hammer to see what kind of shape it’s in: new, slightly used, worn out, etc. A new blacksmith hammer costs 200 at a Blacksmith Shop, and lasts an average of 200 uses before breaking (unless it gets repaired with the Iron Repair skill).