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In this tutorial, Nick from logosbynick.com demonstrates how to add an outline around text in Photoshop. He starts by applying text to the canvas and choosing a blue color. Using the text tool, he creates placeholder text and adjusts the size and style by selecting all the text with ctrl+a. The size can be adjusted by double-clicking and using the mouse wheel. The font can also be changed, but Nick leaves it as is for the demonstration.