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When you have the "marching ants" around the outer edge, you can right click inside that area and choose "transform selection" and then you are in free transform mode and on the options bar, click the link icon between height and width, and change the percent to something smaller than 100%. If you want the stroke inside a bit, you might try with 95-96 percent. You can change the percent to adjust to your liking. When you like the placement you click on the checkmark in the options bar to execute the transform.
Then you can go to Edit>Stroke and finish up with the stroke.
To use layers styles instead, you want to be on a new layer at the top of your layout and do a flood fill - can be any color. Then using the layer styles, add your stroke, and change the fill opacity to 0%. The fill will be invisible then, but the stroke will remain. I like this method a little better because I can still easily change the color of the stroke.
Hope this helps.
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