What's a good way to set the drag? Prior to hooking up a fish based on what the tippet can handle? Very light to pull off line easily for casting and then adjusting as needed for the size of the fish? I'm still learning and it seems that when I hook up a strong fish I start to freak out and just hold the line and try and let out line as the fish takes it by holding my finger on it. After I land it or lose it, it seems it would have been alot easier fighting it from the reel and having the drag set correctly. I'm sure that will come with experience though huh?
I don't change my drag at all. I always have a pretty loose drag. When I fight a fish, I'll just control the drag by slowing down the spool with my hand.
Actually, your question can be complicated depending upon the type of reel you are using. On some reels the rim of the spool is exposed so it can be "feathered" with your hand to increase the tension on the line; this is typically what I do when I am fighting a big fish. On other reels, the spool turns completely within the frame so the rim is not exposed and you can't use this technique. Another issue is how easily it is to adjust the drag. The reel is use the most is a Lamson and it has a dial to adjust the drag; I find it pretty easy to increase the drag using this dial and occasionally I will do this when fighting a fish. A spare reel I bought (Ross Flywater) has a knob to adjust the drag. Since you can't tell very easily how much you are increasing the drag when you turn the knob, I would probably not attempt it while fighting a fish.
I keep it pretty loose and palm the reall or play it off the loose line I have. Sometimes an adjustment or 2 may be needed during a tough battle with a monster. Leave the drag all the way loose when reel is not in use.