Think of Material
Cotton
If most of us look in our closets and drawers, we will find that much of out clothing is made of cotton (jeans, underclothes, t-shirts, ...). Unfortunately, cotton is not a good material for backpacking clothing. It absorbs and holds sweat too near the body. To make matters worse, cotton loses almost all its insulation value when it is wet, and since it holds water, it takes a great deal of time to dry out. This does not mean that you have to go out and buy a separate wardrobe for backpacking. Certainly, many people have gone backpacking in cotton jeans and t-shirts; however, it pays to remember cotton’s limitations when you are selecting clothes for your trip. If you have t-shirts and sweatshirts which are made of synthetics, wool or blends, these will make a better selection than the same articles of clothing made of cotton. The one article of clothing to pay special attention to is your socks: if at all possible, do not use cotton socks. If you must, be sure to wear a thin pair of synthetic liner socks to keep the sweat away from your skin.
Wool
While some people will find wool somewhat itchy, and others may consider it old-fashioned, wool and wool/synthetic blends are very serviceable for backpacking. Wool tends to absorb less sweat than cotton, but if it should become wet, it retains its insulation value. Wool is much warmer than cotton and as warm as - or warmer than - many synthetics. Wool and wool-blend socks are a good choice for outer socks.
Synthetics
Most synthetic fabric is "hydrophobic"; that is, it tends not to retain moisture from perspiration or precipitation. Instead, it transports the moisture away from the skin. This makes most synthetics (provided that they offer insulation value) a suitable choice for backpacking clothing.
Think of Colour
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White or very light-coloured clothing may not be the most practical on the trail, although it is cool in warm weather. Yes, we know that the person who is wearing dark-coloured clothing may be just as filthy as you are in your no-longer-sparkling whites, but at least he/she is not advertising it.
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In hot weather, a light-coloured hat is a wise choice.
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Avoid blacks and navy in very warm weather.