Have you ever had a logo that just looked "blah" ? Just a solid color? Or even have text on top of an image with a complex design making it hard to read? Well fear no more, here's a simple solution to that, and it has many other uses as well!
We'll start with a simple white background with a random size of 400 x 173.
In
white, I'll type "Waloosh.com".
I know that typing in white on top of a white background doesn't make sense, but it will in a second.

This is shown in black to show what I'm typing.
Then, we will go to Layer > Layer Style > Stroke.
The default color will be black with a size of 3.
1. You can change the size to anywhere you want. Whatever you feel most comfortable with.
2. Most of the time, you'll want to choose a color that sticks out, but also blends in with your image. If your text is white and your background is off-white, you don't want a blue outline. Best would be a gray-ish or black.
This may look very basic, but if applied correctly and make the difference in a beautiful image compared to an "ugly" image.