I prefer to go light when trout fishing - I normally fish 7 or 7'6" ultra light rods and 4lb test Trilene. I almost never bait fish for trout anymore - but when I do it's good ol' garden hackle (night crawlers) pinched off or, if they're small, fished whole hooked once, on a light wire #12 or 10 dry fly hook (not an actual fly, but the hook it's tied on) with just enough weight to cast it out.
Normally I'm fishing lures or flies for trout. For lures - my #1 go to is the inline spinner - more often than not a Rooster Tail, though I have more and more been using Panther Martin spinners with great success. I fish the smallest spinners I can find - generally the 1/32 to 1/8 oz size, 1/24 and 1/16th oz being the most common that I throw. Favorite colors are hot pink w/ silver blade, black body/gold blade, rainbow trout pattern/gold blade, brown trout/gold blade, and all black.
If not chucking spinners, small flat fish and small floater-diver rapala minnows work excellent - I stick with natural finishes usually - silver/black combos or all silver. Smallest sizes you can find.
Also, the Trout Magnet jigs in 1/64th size, I fish a tandem jig setup most often, though occasionally I'll fish a single jig beneath a small float. Normally when fishing these jigs, I fish them just with the tandem rig, no extra weight or float. Cast out, let slowly sink, and twitch it back every so often. In moving water I drift & twitch the jigs. These are killer lures for just about anything that swims around here - have caught trout, multiple species of panfish, along with both small & largemouth bass on these. Go to color is white, with brown being #2.
To expand a bit on the rods/reels I like - I'm a HUGE Okuma and Shimano fan. Right now, I've got 6 Okuma Celilo rods for everything from ultra light trout/panfish rods, to a heavy salmon/sturgeon setup. All but one of those rods is wearing a Shimano reel - my steelhead drifter is wearing an Abu Garcia Revo SL. ALL of my spinning rods that I use anymore are wearing the Shimano Sienna reels, I've got them in 1000, 2500, and 4000 sizes. Very nice, well built reel for $30. For 99% of my trout, bass, and panfishing, I'm using either my 7' UL Celilo with the 1000FD Sienna, or my 7'6" UL Celilo with a 2500HD Sienna. The 7' rod is currently strung with 4lb line, the 7'6" I spooled up with 6lb line, as it's seen more and more finesse bassin' duty this past year. Either one of these rods will cast those little 1/64th Trout Magnets a country mile - which is really nice. The Sienna reels have a solid anti-reverse mechanism which I love for both jig and spinner fishing, and the drags are very smooth. The Celilo rods have come down in price a lot since I bought my first one about 8 years ago. You can get them at Bi-Mart, Dicks, Fisherman's, or Wholesale Sports for about $20-50 depending on length/action and if they're on sale or not. They come in lengths from 5' to 9'6".
I'm seriously considering stepping up to the Okuma SST rods for future purchases though - the SST's are also coming down in price. They used to hover around a hundred bucks - but I've seen select models as low as $30 now - which is really nice. I just haven't found a rod on the market in that same price range which is as light, sensitive, or versatile as the Okuma rods. Okuma also makes a GREAT inexpensive fly reel with their Sierra series. Nice real disc drag, silent retrieve, well built reel, for $30. I've got one on my 5wt - it replaced my long loved Medalist reels. My 10wt wears an Okuma Helios reel also.
I've been a die hard Shimano fan since I was a kid - my first spinning setup my dad gave me had a Shimano reel on it, and that reel is still going after 20 years. My heavy salmon/sturg rod wears a Corvallus (not sure why they spelled it with the U instead of an I, but ohwell) baitcaster. I've never had a Shimano reel break on me - even after a lot of hard use (like carp fishing with my ultra lights).
If I was going to deviate from the Okuma rod fetish I've got going on - my pick for trout fishing would honestly be the nifty yellow whippy Eagle Claw fiberglass rods. There's something about a fiberglass rod that just makes me giddy - the sloooooow action is really great for fishing light lines and baits, and it really does kind of give you that cane pole feeling - it's like being a kid again all over. I've got an Eagle Claw "Packit" rod that I fish every so often that is just sweet. One of these days I'm going to have it rewrapped with better guides and have the foam grip replaced with cork - but for now it works like a charm as it is. Bi Mart always has the Eagle Claw glass rods in stock, usually they come in a combo with a decent enough little spinning reel with them. I think they sell for $25 or $30 for the combo.
There's a fellow in iFish that uses these rods with baitcaster reels and fishes for kokes with them, and he's in love with these little rods.
Fishing is an addiction...