Step 1: Electrical or Mechanical FAULT

Are the hands moving at all?

Yes:  the hands are moving

You can assume the circuit, contacts & coil are OK and the problem is a mechanical problem
The next thing to check is the hands

No: Proceed to test the coil with the Circuit Tester

Place watch on the circuit tester with the coil over the sensor. Are the leds flashing?

Yes: You can assume the circuit, contacts & coil are OK and the problem is a Mechanical Problem

No: then the problem is with the electronics

Check the hands

Are the hands touching one another, or the glass, or the dial?

Note 1: On old worn watches and watches which have been knocked, the hands may not rotate in a flat plane and may catch at certain points and be ok at others
Note 2: Shaped / square domed glasses; hands can touch at certain points and be ok at others.

Tip: Sometimes the hands create circular rings on the glass or dial over time

An easy Testing Method:
Align hands so they are over one another then look at a low angle through the glass to judge the gap between the hands.
To check the hands and the glass is more tricky. At the same low angle, touch a point of the tweezers to the glass over the tip of the closest hand and follow the hand to its pinion. You will be able to detct the gap changing and with an educated guess at the thickness of the glass determine if this is a problem

Alternative Method:
If you are still unsure then you will have to take the movement out of the watch. Once the movement is out of the watch, align the minute and hour hand and look at them through the eyeglass and see if they are paralell and not touching one another or the dial. Repeate 3-4 different positions around the dial.
If they are touching one another you need to adjust them.
Once they are ok move the minute had under the second hand and check that they are paralell or at least not touching (don’t forget the tail of the second hand this can also touch the minute hand or glass).

Tip: here is a quick and easy test to see if the second hand has been rubbing on the glass. With the movement out of the casing you breathe (huh) on the inside of the glass which will mist it up for a few seconds exposing the rings formed by the second hand rubbing on the glass. 

Ideally, the hands should be parallel to one another and the glass and dial but on certain watches the dial has numbers and logos that get in the way. If so, then you have no option but to raise them.