Need help, icon graphic looking inaccurate

Hi eyeryone,
I'm started to create my first own simple mod, but I got stuck with the icon graphic, it still looks like crap.

What I did:
1. Load icon template
2. use magic selection on white circle
3. copy selection to new image
4. paste icon graphic
5. invert selection and use it to cut out the icon graphic
6. now I have a circled icon graphic that I copy to icon template
7. save as .dds file

It has all those black pixels around it. First I thought it is too small, but other icons from mods are same size and look fine.

What am I doing wrong?!? It's probably very simple...

See in game sample screenshot and photohop file

What settings are you using when you save it as DDS? Looks like you're saving it with 1-bit alpha, messing up the transparency.

Try to choose DXT5 as setting.

Thank you so much!