This is such a lovely stitch. It is just like coral stitch with a little extra add on.
I hope my instructions for this one make sense as it is a little hard to show you all the steps. When I am trying to sew, hold the thread in place to get the knot AND take the photo, I really needed three hands. Consequently a couple of pictures could not be taken ;)
So, first things first, bring your thread up from under your work and working to the right (for us lefties) insert your needle down and up again with your thread position over to the right. Then hook it around and under the needle. Holding the thread down taught on the right, gently pull it with needle thread to make a little knot.
The next picture shows where the little knot sits. Then bring your needle around again to the right and swing back and under the thread to left of knot. Do not catch the needle into the fabric, but simply pass it up and under and around to the right again. You are going to form another little circle around the knot.
Now this is where the picture is missing. Once you complete the above instructions, you then must catch your needle into the fabric, making a very small catch under the little double knot, horizontally.
Once you pull this through to the right you will have a nicely finished stitch held in place out of sight.
Continue in this way, working to the right until you have done your desired number of little pearls. Voila, a string of pearls stitch