Here we have the path tool. Make sure when you begin you have "Design" selected and "Pologonal" checked. It makes it much easier and quicker and you can just use a feathered eraser to clean up the hard edges. I will be showing you this image with only the large title.
Use the path tool to outline the "A" and hold "CTRL" to complete a shape. I continue to select all the letters then click selection from path and inverse the selection and hit delete and fill the background with black.
So to sum it all up the path tool is used to cut out specific shapes.