To move selected pixels, you have to use the move tool. No longer is it acceptable merely to drag inside the selection with the marquee, lasso, or wand tool, as it was in Photoshop 3 and earlier. If you haven't gotten used to it yet, now is as good a time as any. The move tool is here to stay.
You can select the move tool at any time by pressing V (for mooV). The advantage of using the move tool is that there's no chance of deselecting an image or harming the selection outline. Drag inside the selected area to move the selection; drag outside the selection to move the entire layer, selection included. I explain layers in more detail in Chapter 12.
Tip To access the move tool on a temporary basis, press and hold Ctrl. The move tool remains active as long as you hold Ctrl. This shortcut works when any tool except the hand, pen, or any shape or slice tool is active. Assign this shortcut to memory at your earliest convenience. Believe me, you spend a lot of time Ctrl-dragging in Photoshop.
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