How to Make Awesome Thumbnails

I heard that no matter ho high the resolution is on the thumbnail, YouTube downsized it to 720p regardless. Idk if that's true, but it seems believable.
 
What do you think of my newest thumbnail
Is it too much? Or is it just right?
A lot of people use the orange because other people do but I just love the color orange so I put it on my text
 
Just use booty pics. 1m views overnight.

Serious : thanks for posting this , its the little simple things like this that make a big difference . Much appreciated.
 
What I do is I open up Photoshop, and find a background pic off google images related to my video. Then I put another image in one of the corners of the video off google images which may even be myself. After that I put the title of the video in massive letters.
 
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