The Text tool is the T on the toolbar, and may be pulled up with the T key on the keyboard, or by clicking on the Text Tool on the toolbar..
   Select the Text tool, then click on the document window to pull up the text menu.( It works a little differently in different versions of Photoshop. In Photoshop 4, choose your foreground color before selecting the text tool. In Photoshop 5.5, one can choose from the text menu.)
       Select the font that you want from the font dropdown box, and the size from the size dropdown box. You can also select Bold, Italics, and how you want it positioned on the page.
       (This type tool box is from Photoshop 5.5, and is a little different from the one in 4.0.)
     Once you select your settings, just type in the text that you want, then click on ok. The Text menu closes, and places the text on the page. It is on a separate layer, and the layer must be selected before you can work on it in any way. It appears blue on the layers palette when it is selected.
     
        After closing the text palette, select the move tool to work on that text. (Any time you click when the text tool is selected, you open the text palette, where you can type in more text).
Using the move tool, drag on the document window to move the text around and position it where you want it. There are also many enhancements that can be made with the text after you create it.
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