Download ICO format for FAVICON
A favicon is the little icon that appears next the websites url that can be used to identify your website and for users to navigate there bookmarks quickly.
You will need relevant plugin for photoshop to convert image into ico format. Download the ico plugin from here. Download relevant plugin for operating system. Save the download to your desktop, or somewhere you will remember and move it to where your plugins folder is in photoshop. In most cases it would be
c:\Program Files\Adobe\Photoshop\Plug-ins\File Formats.
Now lauch Photoshop. If already lauched, restart the program.
Creating a FAVICON
In photoshop from the main menu select File - New and create a document height 64px - width 64px
Zoom in and create your icon. Keep it simple and not too many colors
When icon is created, from the main menu File - New and create a document height 16px - width 16px
Left-click and drag the tab of the newly created document, the window shuld be still open but smaller. In the layers section left click and drag the icon you have created into the window. Left click that window and drag it to where the tabs are (refer to video).
Now zoom in press Ctrl T Free Tranform Hold Shift and drag the corners so the icon fits inside the document.
File - Save As select format ICO (Window Icon) (*.ICO) and name the file favicon
Now the icon is created you need to add the following line to the head section in your website
<link ref="shortcut icon" href="favicon.ico" />