I am constantly stitching on knits. I have done bathing suits as well. I always use 2 layers of cutaway and for really stretchy fabric some adhesive is not a bad idea, definitely 505 if you can get it. I know others use tearaway on knits but I don't think this stabilizes it enough. As Mariejoost has said, make sure it is firmly hooped but don't stretch it. I don't bother with wss on top.
Alice.