How to make a perfect watermark

How to make a watermark working perfect or what are the requierments for making it work?
Required Program :-
Photoshop
Image Converter (Optional)

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The first thing you need is a proper Watermark which you have made.
Always knowing that your picture or watermark must be Transparent so start making from the first point as Transparent background.
When you are done with your logo or watermark with the Transparent background. Save it with the format .png
If you have made the watermark on a other program and it is transparent all you need to do is convert it to .png with some image converter.
If your program don't have the the transparent option the you will need to configure your picture in photoshop.

Photoshop Options.
Copy your picture into Photoshop and make a new file with transparent background .
Copy your picture just the places you want to be in your watermark and put them in the new picture.
Then save the picture as .png and your done.