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Let's start with the picture frame. Open it, use your favorite selection tool to select it (the Quick Selection Tool and the Pen Tool works great in this image) and paste it into our image.
Resize the picture frame using the Free Transform Tool.
Before you accept the changes you did with the Free Transform Tool, rotate the picture frame 90º CW and position it in the right place.
Step 6: Add the old man picture to our hanging picture
Open the old man stock, press Ctrl/Command + A to select it all and copy and paste it into our project.
Now we have to resize it. Hold Shift + Alt/Option and use the Free Transform Tool to make the old man picture fits the picture frame. Position it on top of the picture frame.
After that, make sure that the picture frame layer is on top of the old man layer.
Now we're going to resize the old man picture, even more, using the Free Transform Tool. Make sure that the top and the bottom of the old man layer touch the inside borders of the picture frame layer.
The last thing we need to do is flip this layer horizontally. To do that, go to Edit > Transform > Flip Horizontal.
Your image should look like this now:
Step 7: Add the ropes holding our picture
Open the rope stock in Photoshop and select it by pressing Ctrl/Command and clicking in the thumbnail of the layer. After that, copy and paste it into our project.
The rope is really long so we're going to have to resize it. Like we did before, use the Free Transform Tool (Ctrl/Command+T), and press Ctrl/Command+0 if you don't see the whole rope. After that, resize it to a smaller size.
Now position the rope on the left side of our image and place the rope layer behind the picture frame layer and the old man layer.
Duplicate the rope layer by selecting it and pressing Ctrl/Command+J. After that, move your new rope layer to the right.
And now that you're done with the ropes your image should look like this.
Step 8: Add the pigeon sitting on the picture
Open the pigeon stock and select it with the Quick Selection Tool (use those tips I showed before to make the selection better).
Copy and paste it into our project and, as usual, resize it using the Free Transform Tool(Ctrl/Command+T).