Step 4 - Resize your photo. |
Click the Deform Tool on the left side of the
screen.

A gray box with handles (small boxes) will appear around the photo.
Hold the shift key*and
hover your mouse over the lower right corner of your
photo until it changes to an "over
corner handle". Click and drag
it to the lower right corner of the canvas area. If the image
doesn't fit vertically, you can continue to drag
the image off of the canvas area. You will see
how your image will be cut off. Hover your mouse
over the image and move it where you
want within the current canvas size.
An "over corner handle" looks like this: 
*Holding the shift
key maintains the aspect ratio (proportions) of your image.