Drape a light net over a small tree or shrub. These nets are specially designed for easy installation. Find the middle of the net and place this over the highest part of the tree. The lights will fall down either side. Make sure you have a long enough extension cords to reach the net.
Hang traditional Christmas lights in the tree by wrapping them around the branches. Start at the top of the tree, and weave the lights in and out of the branches. Wrap the lights around the trunk of the tree for a more densely lit look.
Wrap permanent lights around tree branches and the trunk for year-round lighting. This light works for parties, special events and day-to-day illumination. The trick to permanent lighting is to use professional-quality lights and wrap them loosely around each branch so the tree has room to grow.
Angle the lights to give a desired effect. Locate larger lights, such as spot or flood lights, at the bottom of the tree to light up the tree from the bottom. Place flood lights above the tree for a "downlight" effect that mimics the natural light of the sun. The light shines down through the tree and spreads out onto the surface below. Both these examples work well with permanent lighting and can illuminate a sidewalk or path.
Use colors to accent the tree or improve the overall lighting. White lights are the brightest but a single color tree or multi-color tree is more festive. Choose colors that match the overall holiday decor of the tree if the decorations are seasonal, but use more subtle colors for year-round lighting.