Bead knitting
Beaded knitting is a type of knitting in which the stitches are decorated with ceramic or glass beads.
The techniques are described here for beads, but knitting sequins (and other perforated objects) can be done analogously.
Techniques
There are two main approaches- threading the beads on in advance, and threading the beads on individually as the object is knitted.
Threaded on in advance
The classic approach is to thread beads on the yarn in advance. There are several ways to go about knitting the beads in though: slipping the stitch, putting the bead between stitches, and putting the bead on the stitch.
The slip stitch method is to slip the stitch with the yarn (and bead) in front at the position where a bead is desired. The bead will be visible only on the right side of the work. The disadvantage of this method is that beads cannot be arranged on top of each other, since the same stitch would have to be slipped multiple times. The axis of the bead is horizontal to the work.