How to watermark pictures?

Can someone tell me what the easiest and best way to watermark pictures are? I have adobe photoshop. I want to be able to add see-through letters over the picture but I'm not sure how. Anyone got ideas or examples?

 

create a new layer above the background layer. Put whatever you want the watermark to be on that layer. Set the opacity level of that layer to something low, I usually use 30%

 

yep, just how ProgrammingAce said. Basically you have your picture. Now use the text tool to add text. In the bottom right half of the screen you'll see the properties box. Double click on the text property to start up the blending mode. In there you can choose the opacity level. I use 20% myself.

Yakumo

 

Thanks guys. Both look wonderful. I can't decide which I like better (20 or 30). Maybe I'll do 25.

 

To be honest, i change the opacity depending on the picture. If you look at my site, i use a yellow watermark that doesn't show up well against some backgrounds. I've set the watermark as high as 75% on some pictures, and it's still hard to see... I guess the easier solution would be to make a better watermark....