Double click on the Adobe Photoshop application icon to launch the program. Create a new blank project, and select "Ellipse" tool to draw a circle on the blank canvas. In order to create a symmetrical shape, you will have to press and hold the shift key, while you drag the mouse while drawing the circle.
Now you need to click on the "T" icon, in order to select the “Text” tool. After selecting the tool, you will have to place your mouse cursor over the circle that you created in the first step.
Make sure you have placed the cursor over the circle properly, and see if it changes to “I-beam”. Press your left mouse button and start writing the text that you want to create the circular pattern. After you are done with writing your desired text, you can highlight it and select your desired font style, size and colour from the main toolbar.
When formatting the text size, font and colour, make sure it complements with your requirements. For instance, if you are planning to use the circular text on another image, then the text should have a colour that must be in contrast to the colour of the image.
Once you are done with writing and setting up the font style, size and colour of the text, you can adjust it using the Free Transform tool. For that purpose, you can go to the “Edit” menu and select the "Free Transform" option. Here, you should make sure that you have selected the text before you click the "Free Transform" tool option.