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Adobe Photoshop is an awesome tool for graphic design
Originally, it was used for editing images and photographs. Now it is used for designing everything that falls under the graphic design category. The only reason is layers! Layers are easy to manage the designs since they tend to isolate each design element. Combining layers will complete the picture. The ease of use, printing options and hundreds of options make it a choice tool for graphic designers.
Adobe Photoshop has a variety of sub-tools to create compelling designs. You can use it to create logos, icons, layouts, images, illustrations, and anything that has to do with a design. Photoshop also boosts an impressive collection of fonts which can be helpful in your designs.
Unlike other design tools, Adobe Photoshop gives you freedom to do anything imaginable. The primary aspect of this software is layers. Originally introduced in Photoshop 3.0, layers made the life of a designer easy. You could do complex compositions easily without having to be a channels guru. I remember before layers, if a client wanted to make changes to a composition, or even change a font you were in big trouble. A layer is simply one image stacked on top of another. Imagine I have a piece of paper and I paint it red. Then I take a piece of clear cellophane and paint a yellow circle, and lay it over the paper. Now I take another piece of cellophane and paint some blue type and lay that on top of the yellow circle. I now have a background (red) and 2 layers (yellow and blue.)
You can also do special effects on each layer. There are several fantastic options. You can drop a shadow, give inner and out glow, outline an image or a word, perform gradients and bevel/emboss.
Several other options can help you tweak the image according to your desire. You can change the image size, adjust mode of an image, set pixel aspect ratio, rotate the image, etc.
You can create beautiful layouts in Photoshop without having to find appropriate software. The basic set of tool on the left side will help you design layouts since it has all the necessary tools to do that. Similarly you can design compelling photo albums. The marquee tool, magic wand and other tools help you tweak your images, design a photo album and place the images in the album.
Photoshop has a wide range of color palettes. You can choose between various palette interfaces to suit your needs. Each color has its code which can be used for future references.
Apart for designing, you can use Photoshop to correct images or tweak them according to your desire. The freedom for designing anything is the most powerful feature of this software. Even if you are just starting as a designer, Photoshop will provide you with all the basic tools you need to create compelling designs.

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