How do I fix the spacing between letters in Photoshop?

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You should go to tracking option in the character panel(which is under windows menu). You will have to select the text first n then go to character panel and adjust the spacing of letters selected.
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Go to windows menu and find the character panel . In the character panel adjust the tracking option to reduce or increase the space between letters. Dont forget to select the text before formatting it
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Animation trainer 10+ years experience

use text option tool
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