How to pick a wire size:
1) Determine the max current that will be passing through that wire
2) Determine the max acceptable voltage drop that you can tolerate in that wire run (make sure to divide by 2 if this is a power/ground pair)
3) Determine the length that the wire needs to be to get from point A to B
From those three, calculate the maximum resistance you can tolerate in ohms, convert to ohms per 1000', and find a wire gauge that meets or beats it. Make sure you stay well below that table's "Chassis Wiring" numbers as well to make sure you don't burn up the wire.
If the calculated wire size is too big for what you want to do (can't fit in conduit, etc.) then re-visit steps 1-3 and see what you can do to lighten the requirement. If, on the other hand, you have extra room available, then feel free to go bigger to improve current capacity and voltage drop/efficiency.