How to increase stitches while making a small hole
This is how you increase one stitch by picking up the thread between 2 stitches from the previous row. There will appear a small hole under the new stitch:
Figure. 1: Work to where you want to make your increase and get your new stitch.
Figure. 2: Using the tip of your left hand needle, go from to back and pick up the thread between the stitch on the left hand needle and on the right hand needle.
Figure. 3: You now have a new stitch on your left hand needle.
Figure. 4: Insert your right hand needle in the new stitch as if to knit and pull the yarn through the loop.
Figure. 5: You have knitted one new stitch that is now on your right hand needle and you can let it slide off the left hand needle.
Figure. 6: Continue and knit the following stitch on your left hand needle.
Figure. 7: Work a couple of rows and you will see that a small hole appears where you made the increase.
This way of increasing is a nice way to shape your knitwear in a straight or diagonal line. The hole will not be large but will mark your increases.