pencil has come through off the tracing paper and so you can see where you need to cut. i decided on my flag shapes previously, but you can choose a shape here so that you get a good border around your letter.
when you are cutting out the letters, there may be some that would just make a large hole rather than seeing the shape of the letter and so you will need to make sure there are some areas that keep linked to the outer paper. for the letter a, i cut out the bottom gap all together and cut around the top outline to make the a stand out. 