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I'm sure there are many ways to do this, but this is the one I use.
I find it to be quick and easy, as you can reuse it on any photo,
and it's easy to change the size.

Step 1: Create a New Document

I made it 500 x 500px, and make sure the background is transparent.

Step 2: Add Text

Type whatever you want your watermark to say.
You can also add any sort of logo you want, as long as it is a silhouette,
as well as a copyright symbol.

Step 3: Merge Layers

Self-explanatory.

Step 4: Edit Text

Add a drop shadow, and bevel/emboss.

See the pictures for the exact settings.

Change the fill to 0.


Step 5: Save It As a Pattern

Edit > Define Pattern...
Name it 'Watermark' or whatever you'd like.

Step 6: Apply It to an Image

Open the picture you want watermarked, and add a fill layer.
Choose your recently saved watermark, choose your size and click OK.

Step 7: Fade and Flatten

Set opacity to 50%.
Flatten your image.

Step 8: Some Examples

Here are some examples of some different sizes on a few of my photos.
This is my first instructable, so thank you for any and all views/comments.
Feel free to experiment with the settings and see what you like the best.
Thanks for looking, don't forget to rate!
<p>I will try this thank you</p>
Hi, I like what you've done, very neat. Would you mind sharing the exact settings? Unfortunately the pictures are not big enough to show the numbers clearly. <br>Thanks for taking the time to write the instructable :)
Watermarks are useful, but my advice is to keep them small, yet still viewable and somewhere on the image where it cannot be easily removed in a graphics editor and yet does not annihilate the image. /vaugely offtopic.
Thanks for the input.<br/>In my opinion, <em>to annihilate the image</em> is sort of the idea behind a watermark,<br/>but I do so where you're coming from. <br/>
see*<br />

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