Justin's right -- I forgot to talk about seam binding! I was too literal...
If possible, cut the wool with pinking shears (if you have them); if not, just make a straight cut, but then, after sewing the main seam, run a line of zigzag stitching between the main seam and the edge of the fabric, and trim the fabric close to the zigzag. This will prevent the fabric from unraveling.
Another choice would be to buy some lightweight, bias cut seam binding "tape" (it's not sticky, it's like a ribbon). Sandwich the cut edge (outside the seam) into the seam binding tape, and sew along the edge of the tape. This method is much neater, and more comfortable if the seams will come into contact with your body (no roughness).