Photoshop 11: Adding Text to a Photoshop Image
Using Photoshop for text can be a good idea if you would like to put text on top of an image or if you want to do something special with a certain piece of text that would be difficult or impossible with a program like Dreamweaver.
To place text, click on the Type tool in the tool bar; a cursor will appear on the image.
NOTE: If the image turns red all over, you are in the wrong mode - Change to RGR mode - Select Image - Mode - RBG.
In this example above, you can see the Text Tool is selected .
The Text Options window is now available at the top:
You can set the font type, size, alignment, color and more in this option window.
Note: The text is added as a new Layer, so you can change it easily, hide it if needed or delete it.
To start a new text layer
You have to de-select the Text Tool by selecting another tool. Then you can select the Text Tool again and click on the image and you should be working in a new text layer.
Note: The following information is associated with an older version of Photoshop, but you might find it useful.