I start out with a knot tied three times and clipped short
I have sewn two pieces together. I finished my last stitch so the thread is on the inside of the two pieces of felt. I then brought the needle through one of the last stitches.
I pulled it almost through, leaving a loop, then put my needle back through the loop to create a knot. I do this twice.
To finish a knot on the outside I pulled my needle through next to one of the last stitches.
Once all the thread is through I put my needle through the stitch and pulled some of the thread through leaving a loop.
Here is my loop, I put the needle through and pulled all the thread through creating a knot. I did this twice.
This is my knot:
Instead of clipping it and leaving it hanging, I put my needle back into the seam next to the knot...
and pulled it out the side. I would have pulled it through a side seam if there had been one, and clipped it off there.
This is what the knot will look like on the outside:









