Ruled by fire and Sun, the projective stone Carnelian carries the powers of protection, peace, eloquence, healing, courage, and sexual energy.
Worn on the hand in ancient Egypt the stone was used to dispel anger, envy, jealousy, and hatred for the wearer. Often used as a peacemaking stone, it can also be used to help dispel depression. Carnelian is also worn either around the neck or in a ring on the hand for those who wish to boost their courage when speaking in public. The stone allows the wearer to become more eloquent when speaking and helps to provide self confidence. The shy and timid can also benefit from the wearing of carnelian stones.
Also used to counteract negative thoughts and energies, carnelian is said to be able to protect the wearer from having their thoughts read. When carved with a sword or image of a warrior, the stone can be placed in the home to ward off lighting and storms, or carried as a protective measure against enchantments as was done during Renaissance times.
Worn to prevent all manner of blood diseases, nose bleeds, insanity and skin diseases, as well as general good health inducer. When worn to bed, it aids in halting nightmares.
I recently acquired some carnelian beads which I used to make a very pretty set of earrings, which I’ve yet to take a picture of. However I would like to note that I have not yet tried the stone to see what the effects would be for me. One of these days, I shall have to make use of the carnelian stones I have, just to see what they do. 
*Information gathered from Scott Cunningham’s Encyclopedia of Crystal, Gem, and Metal Magic