The knit stitch is the classic stitch of knitting. Start by Slipping the First
The knit stitch is the classic stitch of knitting. Start by Slipping the First Stitch as shown in the first image. To make a knit stitch, the yarn must first be in the rear of the knitting and under the right needle (side fartherest away from the knitter as shown). 
Then the right knitting needle enters a stitch from the front (side closest to the knitter) of the first stitch on the left needle. Next the yarn is wrapped around the right needle, from underneath towards you, and then over the needle away from you forming a loop.
Now with a little tension on the working yarn, pull the loop through the old stitch so that a new loop is on the right needle. The last step is to pull the old stich off of the left needle.
You have completd your first knit stitch. You continue by entering the next stitch on the left needle, wrap, pull the wrap through, and pull the new stitch off of the left needle. Continue across the row for each stitch on the left needle.
Should the knitting needle fall out of the knitting, picking those stitches back up when using a wool/wool blend is usually very easy. Those stitches want to stay where they are so just slide the needle back into the loops. Hold the fabric gently being careful not to pull at the fabric or the loops.