There is another way to do it thats similar but may be a bit simpler first make a new layer and get the brush tool on the new layer paint over the image you want cut with a white colour then get the magic wand click on the new layer you made and then go to the background layer and then go to edit cut or copy and past it on either a new document or where you want it moved it works for me all the time and is the easiest way to do so in my opinion.

 

Karl