Standing is good for flat high speed corners and rutted, whopped sandy corners where you need a ton of leverage on the bike. Your body can exert MUCH MORE of a leverage factor over the bike while standing. Sit in all other corners. Ideally, you sit in the "pocket" of the seat, not all the way up and keep all of your weight on the outside peg and the seat. NO WEIGHT ON THE BARS!!! Remember to keep the ball of your foot on the peg too, that is really important.
Moo, sitting far up makes the rear end really fishsy. The pocket of the seat is a much better choice. You bike does not need much weight on the front end to turn well at all. I take all sand corners almost on the fender with my foeght on the pegs standing. Rutted corners I do sitting down with one foot out, etc.