At the end of this tutorial you’ll be able to transform any of your shots from this (for example):

to this

and even this

First open your shot and duplicate the layer (use ‘Layer’ -> ‘Duplicate Layer’ from the Menu or ‘Ctrl+J’). Name it “Modified” for example. Select the bottom layer (with your original shot) and hide it by clicking on the eye right next to your layer or by going to ‘Layer’ -> ‘Hide Layers.’

Now go back to “Modified” layer and hit ‘Ctrl+T’ or ‘Edit’ -> ‘Free Transform.’ Set both sizes at 90%:

Now go to Blending Options (right click on the layer and choose ‘Blending Options’ or press this icon in the Layers palette). Select ‘Outer Glow’ and apply these settings:

You can play around with them and choose what you like the most. Here is what you achieved until now:

Let’s say we want to put it on a white background. Then make a new layer (‘Layer’ -> ‘New’ -> ‘Layer’ or ‘Shift+Ctrl+N’) and call it “Blank.” Fill this layer with white (choose white as foreground color and hit ‘Alt+Backspace’). Move this layer below the “Modified” Layer. And this is what you’ll get:

And for the last outcome, here is what you have to do. Hide the layer named “Blank” on the same manner we hide the original layer at the beginning of this tutorial. Make visible the layer you have at the bottom with your shot. Duplicate it. With the duplicate selected, go to ‘Filter’ -> ‘Blur’ -> ‘Gaussian Blur’ with a Radius of 5. I chose 5 for this particular image, but you can choose whatever it fits your image better. And this is the final image:

This tutorial is similar to a frame done with drop shadow, but the difference is that you get a border around every border of the image. Hope you enjoyed this tutorial. If you have any questions, please let me know.