I avoid going too small with panfish since it resulted in a lot of very deep hook-ups and difficult releases. They somehow manage to get their tiny mouths around some pretty big hooks! My favorite method is using surface flies and I probably connect with one in five, maybe one in three on a good day. The continuous retrieve is a good technoique with surface flies too.
When sight fishing, look over your shoulder from time to time, you never know who's behind you