First, you will need to launch Photoshop CS4 and create a new document by going to File and then to New... (or use the keyboard shortcut CTRL + N). Then, name the watermark in the box at the top of the screen. Next, you will want to enter the width and the height. This can vary depending on the size of the image being produced, but I usually stick with a 1600x200 pixels, with a 300 pixels/inch resolution. This size will work well for a copyright or name watermark. For a square or circular watermark, you’ll have to experiment with what size works best for you.
Under Background Contents, make sure that you choose Transparent from the drop down box. The background needs to be transparent so that when we copy the watermark into a layer on another photo, only the text will be visible.