If you want to water mark your images, no need to go beyond our favorite Windows Live Writer. This is a hidden but very handy feature which does not require any third party apps.
Steps to put watermark on your images:
- Import the image on the live writer editor.
- Select the image. You will see this on right hand side.
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- Go to “Effects” Tab > Click on + dropdown > Go To OverLays > Watermark
- Choose the text that would appear as a watermark.
- You also have the option to choose font, size or position of watermark on the image.
Ankur Jain, founder of a web start-up, long-time blogger and proud owner of the "Learn" series of websites. 
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