rop caps are a nice way to accentuate your writing. When applying drop caps, the first letter in a new paragraph is made larger than the rest of the letters. A simple drop cap can be done without advanced Photoshop skills.

Simply highlight the letter you wish to change in size and increase the font size:

Example:

This sentence has a simple drop cap.

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To create a drop cap with a design inside, similar to the 'D' above:

1. Create a background or design that you would like to appear inside the drop cap.

Example:

2. In a new canvas, create the drop cap in a solid color. Make sure the letter is bold and large.

Example:

3. Using the magic wand tool, select the letter.

3. Drag the outline of the letter into the window with the background. Whatever shows up inside the outline will ultimately be in the drop cap. If you do not like the background inside, you can move the outline around until you are happy with its position.

4. In the top menu bar, choose Edit --> Copy. Now, go back to the window with the drop cap in the solid color and select Edit --> Paste.

5. Click on the magic wand. Hold the SHIFT key down and select all the white parts of the background (namely the white parts inside and outside the letter.)

6. In the top menu bar, go to Select --> Inverse. The letter should now be selected.

7. In the top menu bar, choose Edit --> Copy.

8. You can now paste the letter in the window with your full text to give the drop cap effect.