This is the image of how I used pen tool to outline the letters PSD. This is an image when I coloured the letters and removed the background.For this task, I used pen tool to make the shapes of PSD letters. Then, I clicked make selection to select all the shapes to change colours or to delete it. This image is when I used fill tool to fill the letters in different colours.This image is to create a negative space of PSD letters.
Direct selection tool: You can edit/move your line that you created using pen tool.