Ink In Water/Smoke Effect (PART ONE)

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hello! this tutorial is by spookyjissh; credits to resources used. 
software for this tutorial is PHOTOSHOP CS6.

Above this are two examples of what exactly I am going to teach today, sorry for the shit quality

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Above this are two examples of what exactly I am going to teach today, sorry for the shit quality.

Anyways, first step!

Open up your background

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Open up your background. I just chose a plain white background with the ICON size.

 I just chose a plain white background with the ICON size

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Click on "File" then click place. Place your Ink in Water/Smoke effect. I placed it on the middle.

Click on the Shape tool (i think that's what it's called) then create a square, this will serve as the border

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Click on the Shape tool (i think that's what it's called) then create a square, this will serve as the border. But, as you can see, it is not transparent in the middle.

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