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Have you ever wondered what colour mode to use in Photoshop? The answer is on what you want to do with the final product? Do you want to save it as a jpg or gif and use in on the web, or do you want to save it as a EPS for printing with higher quality?
Depending in your answer you can select your colour mode, via Image > Mode on the menu. For web use and presentations, use RGB mode, however if your plan is to print the final graphics, use CMYK mode.
RGB colour mode: This mode uses three colours, Red, Green and Blue to compose all other colours, which is capable of displaying nearly seventeen million colours on computer monitors via desktop or browser. RGB colours added together make up white, i.e. they act like light being added together, which is the complete opposite for CMYK colours.
CMYK colour mode: This mode uses four colours, cyan, magenta, yellow and black. Each colour is created by specifying the transparency level of each of these four colours. CMYK colures when added together become darker, and together with black, they support the attribute of ink being absorbed on the paper.