Create paths or outlines

I am obviously doing something very basic wrong.

I add a picture to the canvas (what sort of file should this be?) it could be photo, one colour shape etc.

go to - object, path, everything is greyed out.

Go to -type, create outlines is greyed out.

Go to magic wand nothing gets selected (like it would in photo shop).

When I use the selection tool (rhs) I just have a box around the whole image box (not the picture without even if imported from photo shop with deleted background). 

if I use selection tool (lhs) nothing can be moved or manipulated.

every video online I try to copy I cannot copy as nothing works like on the video 

I would really appreciate some help I have spent hours trying to do some really basic stuff and I just want to cry! 

I love photoshop how can I be so dumb at this !!!