Using pen tool to create image cutouts

In this tutorial we'll learn how to use pen tool and will create a cutout of an old man to knock out the background.

Select pen tool from tool palette. From the options bar at top select path mode out of three mode choices.
Click on top right of the turban to create the first node.

Click on next nearest point and without leaving the pen tool drag downwards. It will create a curved path between two nodes.
Click on 3rd point that is having a sharp curve. At this point we need to remove the handles so that next point can take a new direction. to achieve this we'll press Alt and click on this node. This will remove the handles.
Keep on clicking according to the image. If you need to adjust the handles midway press ctrl and drag the handles accordingly. Press Ctrl with change pen tool in to direct selection tool temporarily.
Once you have almost covered the entire path you may reach near starting point. With pen tool roll over the starting point, it'll turn into pen icon with an "O", signifying close of the path.
Ctrl+Enter the path to turn the path into selection.

Press Ctrl+Shift+I to inverse the selection. Press Delete to knockout the background.