How do you do a nice oval circle in photoshop?
 

When I want to make a horizontal oval circle in photoshop I draw it by hand with the pencil tool and it looks like crap.

is there a way to have it look neat and smooth?

Use the shape tool.

I think you just use the Ellipse tool, make it a selection, then fill or stroke it.
But I'm way out of practice.

yea, eliptical tool.... click and hold over the square marquee in the tool bar and you get alternate shape options.

by oval select or shape tools. perfect circles (width=height) done by holding SHIFT key down while using any of these tools.

As holograph already said above pressing shift key preserves equal dimensions when using various tool in PS like Elliptical Marquee Tool or Custom Shape Tool. :)