Trout Beads

Not sure because I havent used them but i think you'd peg them  6 to 8 inches above the hook.

Great way to catch pressured fish in clear water.  I've pegged them about 3-4" above the hook.  Fish will chase them.  No need for a bunch of weight, no need for any weight in slower water.  They'll come get them.  I don't use an indy with them.  Small hook will work, 16-18.

Why peg them above the hook??

They hit the bead, you set the hook and normaly it will hook them on the outside of the mouth unless you keep the bead about 2" above the hook or closer.

I always figured using beads you hooked the fish on the outside of the mouth like go-in said, similar to lining, unless you pin the bead close to the hook.  I've never used beads, I use "reel eggs" to make single eggs and have had good luck using them this year.
 

Justinl8688,
      This is just for your information and is not an accusation;  BUT!  pinning the bead(s) way up the line and hooking the fish outside the mouth is considered "lining" by most and considered snagging by some.   The chances for snagging increase with the distance the bead is pinned above the hook.   I have used beads and was told by a fellow fisherman that it was considered snagging so I personally quit doing it.  There are some people who will put a bright fly on the bottom, and a bead about 6-10 inches up, and then wait till they are on opposite sides of a fishs' head and then jerk their line.  Definately lining or snagging.  There was a big discussion on this about a year ago and the general consensus was if the hook is outside the mouth it is a foul hook.
      Once again; this is just for your information.  You make up tour own mind.  BTW they definately do work, when I used them I usually tied mine on about 12" above a single egg of a contrasting color, and used them as an attractant.

The way I have used the beads before is to put them on my tippet and about 8" to a foot up the tippet I put on a very small split shot to keep the bead from sliding up beyond that point.  I then tie a small hook or fly on the end of the tippet.  The idea is the bead can slide on the tippet freely.  I can't say this works all that great.

doubletaper,
    Just my opinion but I really think that we have to differentiate between the difference of "catching" and "sport fishing".  If you are after fish just to catch them; then a person could just use live bait, heavy line, and a stiff rod and be done with it.  I have a very good friend who can get steelies, and other trout, just about anytime he wants with a short spinning rod and a piece of nightcrawler.  When he wants to "catch fish" that's his go to rig.  Nothing wrong with that.  On the other hand there are people who try to increase the degree of difficulty and "sport" aspect of fishing by going to spinners, nymphs, and even dry flies.  These same people usually wind up going lighter and lighter with their gear to increase the skill involved in catching fish.  These people are also more likely to practice catch & release.
    So you have two schools of thought: Are you out to just catch fish, or are you trying to make a sport of it.  I don't know where the line cosses.  Personally,  if I want fish; I go with a noodle rod and skein, if I want to challenge myself I go with fly gear, and if I'm feeling like I really want to punish myself I'll use a bamboo rod and all antique gear except line and flies. (the last option, when used for steel, usually results in a sharp cracking noise and another weeks' work in my shop.  but it is about the ultimate test for me).  
    The most important thing, to me, is that all fish be taken fairly.  ie: hooked in the mouth with whatever lure a person is using.  Tail, and head and back hooking is just too wrong to justify in any manner.

Justin,
That's what I do.

I also use the bead with a small split shot above a nymph fly in NY. In NY you only allowed one hook per rod/line.
I like the glow in the dark bead in early am/low light.
Chris

I know someone who has used them up in Alaska. He generally puts them on the hook instead of above the hook. In Alaska they are suppose to represent sockeye eggs and the salmon would inhale them. His clients were likely to catch a fish with this rig.

genieman and indsguiz, your input definitely has me rethinking this whole bead thing and what fishermens objective is to "catch or sport fish". thanks for letting me see why fishermen might use such a tactics. i myself prefer not to use them and am still skeptical  only because of the intentions of catching the fish, truthfuly, outside the mouth.
genieman, i do fish with buggers and also with dries and occasionally do hook a trout outside the mouth but still near it. i also consider this a fair hook up, the thing is i'm not trying to purposly hook outside the mouth. who am i to say what's fair or not. but, again, you two give me a better perspective... ~dt 
 
p.s. now when i read about all the fish people catch in one day or in a couple of hours, i'll consider some of the tactics used in taking these fish, such as "beading" and "lining" and won't feel a little depressed that i didn't catch as many since i don't use these tactics to help me.
 good fishing to all, and to the buck hunters, good luck.
 
it's not luck
if success in constant

We all enjoy the sport for one reason or another.
I say what ever floats your boat
It's all good
(as long as it's legal)
 
amen to that. thank's for the evolution of an angler. i heard that before but couldn't remember it. how true it is!!!

steelstalker,
      No, I believe the last iteration is to wish you could still go out.  Enjoy every moment you can get out and hopefully try to help others who are just starting.  My one goal is to see my son catch his first steelhead.  His technique is great but his success is 0.  Still keeps coming back tho, so maybe before I can't get out anymore.