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Similar to the Polygon Lasso tool, the Magnetic Lasso tool also works by laying points on a path, but it does it for you automatically, based on the contrast of the subject you are selecting against its background. Click once and trace with your cursor along the edge of what you are selecting. If, at some point, the tool isn't adhering to exactly where you want it to, you can back track your mouse along the path, click to plant your own point and then continue. You can also press the Delete Key to remove dots. Close the selection when you arrive back to your original point by double+clicking. You should see a circle appear next to your cursor, indicating that you are closing the selection.

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