That about sums it up, and in basic sense, it makes things look hot.

Now there is a very practical way of learning color theory, and its called a color wheel. Here is what one looks like ( colors may be off slightly ):



Now there is much more complex color wheels but this one is the basic one. This chart can be divided into three groups, as shown in the following diagram:




I do not refer to these charts when I am using photoshop or doing any other design like thing, I memorized it, its like learning your ABC's but for art, just something you got to learn.

We now know the color wheel but how can we use it? There are many ways to use it and I will show you the most popular one.

Complementary:

Have you ever noticed the colors of Christmas? Red and green, well those are complementary colors! Pick a color on the color wheel and whatever is on the opposite side is its complementary color. Simple enough, like so:





There are also more color scheme which can be used in your photoshop designs (what have you), like:
Analogous Color Scheme

Split Complementary Color Scheme

Triadic Color Scheme

Tetradic Color Scheme



Now if you want to get a perfect color scheme every time there is an online application that you can use from adobe. Adobe made this a few years ago its called Adobe Kuler. I use this site all the time when I use photoshop. User friendly so just go wild!

Adobe Kuler

I hope you liked my tutorial, this was written strictly for Zeezed and you have no right to use this without permission. If you would like to use this tutorial please contact me.