Creating a mouse cursor/pointer is really an easy trick, you are good with this trick if you are good at following steps. So, Below are the steps you need to follow in order to create your own custom mouse cursor or mouse pointer using adobe Photoshop.

Steps

Step 1

First of all you need to add support for .cur format which used for mouse cursor and pointer images. For that you have to download and paste the cursor add-on file to your adobe Photoshop(32bit) directory, first Download it from here (Download Cursor Add-on), after downloading browse to your adobe photoshop directory and paste it in under add-ons folder like shown in image below.

Step 2

Now open photoshop and create a new document of 32 by 32 pixels and fill this background layer with black, then import any transparent image you desire onto the background image in my case I have selected a transparent hand.

Step 3

After putting the transparent image onto your background layer you need to select the magic selection tool and then click on the black color to select the background layer.

Step 4

Then right click on your selection and click on “save selection” option and safe the selection, this is the step where you background will look transparent, when you will set it as your mouse cursor.

Step 5

Then save the image in .cur format

Step 6

Now just set this image as you mouse cursor (Go to =>Control panel/mouse/pointers/browse) and select your image.

Video Demonstration