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Inside Photoshop
 
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  Adding text
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Adding text in Photoshop is a little different from the procedure used in Word or other word-processing programs. Photoshop uses a separate dialogue box to control text formatting, and it places text in a layer all its own (this layer is created automatically; you don't need to create one on your own).

To add text to an image, simply click on the type tool and then click on your image.

As you begin typing your text, you'll see it appear on your image on a new layer. You can make changes in formatting and color as you see how your text relates to the rest of the composition.

If you ever want to change text you've already entered, just double-click on the layer containing that particular text and you can edit it. You can also use your Move tool to move where the text is in the image.

 
Two notes about the text tool
  • Even when you're entering text you can still move it around on your image. Just place the cursor on the image (not directly on your text), click-and-hold, and reposition the text (Note: you don't need to choose the Move tool to do this).
  • If you want to change the formatting of text you've already entered, you first need to select where you want to edit with the text tool's cursor. Otherwise, when you change the text parameters like font or size nothing will happen.