For example; you are trying to select a red portion of your image. You have the Tolerance set to 5. This means that the Magic Wand is only going to select colors that are really close to red. Make that a higher number, such as 20, you are going to start picking up lighter reds, pinks and quite possibly some oranges.
The Edge Softness setting is going to determine how smoothly the color change blends in with the rest of the selection. Let's experiment.
You should still have your Tolerance set to 10 and the Edge Softness to 1 from the previous step. If not, please make those adjustments now, then click once on the blanket.
Notice that it did not cover all of the red parts of the blanket? If you look really close, you can see where the pink meets the edges of the blanket, it is a little choppy looking as well. No problem! We can fix that in a jiffy!