So I bought some red and white yarn a couple of weeks ago. I'm going to make myself a Santa hat. I made one a few years ago and gave it away in a Christmas swap. I really wish I had kept it. I don't think it was appreciated. So I'm going to make one just for me. I'll be using Wool of the Andes yarn that I bought from Knitpicks.com. I love Wool of the Andes yarn, it comes in a great selection of colors, it felts well and it's cheap. I bought three skeins of red and one skein of white to make my hat.
Here is a picture of the hat I gave away. This one was started with 100 stitches and I knit a 3 x 2 rib section in white for about 3 inches. I'll be using 16" size 8 circular needles to start. This one was a little too big (you can see how big it is with the white section on the neck of the head model) so I'm going to reduce that number of ribbing stitches to 80. The red section is knit in stockinette stitch, and I reduce the number of stitches every 7 or 8 rounds.