If you’re looking to make a transparent watermark in Photoshop Elements, there are a few things you need to know. First, the easiest way to do this is to use the “Layer Mask” tool. This tool allows you to create a mask that will cover the entire layer, and then use the " Dodge & Burn" tool to change the color of the mask. Next, you’ll need to create a new layer and name it “Watermark”. Next, use the “Transparency” property of the Watermark layer to set its value to 100%. Finally, use the “Opacity” property of the Watermark layer to control how much of the transparency is shown.