Insert a new layer, rename it "tree".
Set the primary color to green.
Set the Shape tool to Triangle and Fill Only.
Draw a small triangle for the top of the tree - make sure you have some room for a star later.
Change the shape drawing tool to the Trapezoid shape.
Insert a new layer.
Draw a overlapping trapezoid.
Now you will repeat the next steps to create 3 more levels for your tree.
With the top layer still selected, Merge the tree layers down until they are all in 1 layer
Change the primary color to a brown.
Insert a new layer, call it "trunk".
Draw a trapezoid shape for the trunk.
Move the trunk layer under/below the tree layer.
Insert a new layer, call it "star".
Change the primary color to yellow.
Change the shape tool to the Star shape (either 5 or 6 pointed)
Draw out a star and rotate/move it how you like.
So far you have this...
Change your primary color to blue (or another color). You can also change both colors.
Select the Gradient Tool.
Make sure your Background layer is active... then click and drag down the canvas.
To set the gradient, click on any other layer/tool.
Add effects to the layers you have so far:
Insert a new layer, call it "ribbon"
Change your color to red.
Select the Line/Curve tool. Set the thickness to 10.
Draw an angled line that will go outside both sides...
Push/pull the circles to create a curved line like this...
Repeat the next steps... until you have about 5 ribbons/layers.
When you've moved the top one, CTRL+D to deselect (get rid of the dotted outline).
Merge the ribbon layers together until they're in 1 layer (but not combined with star etc).
Add an effect: distort /dents / glow
Click on the tree layer.
Select the Magic Wand Tool.
Click outside the tree (we want to select everything except the tree shape).
Make the ribbon layer active again.
Delete (not Backspace).
Insert a new layer, call it "ornaments".
Draw shapes - circles (or stars or the callout shape).
Add the Blurs>Fragment effect to the ornaments.