That's really tricky. A better way is to put 2 sts on 2 needles and use the 3rd to knit with. Then when you've added more sts and it's larger, add the other needles and arrange the sts so there's an equal amount on each needle.
If you do knit the first few rows flat, you don't have to 'transfer' the stitches, just start knitting with a dpn, work a few sts onto that, then knit the next set of stitches with another dpn, and so on.
sue- knitting heretic