The first thing you want to do is make sure your view is set to 100% (that means you are looking at the pixels how they will come out), to do that click on your magnifying glass twice and on the bottom left corner of your image now should say 100%.The go to Image > Image size and change the size of your image. always make sure you have 'Constrain Proportions' checked so your image won't get distorted and check 'Resample Image' and select Bicubic Sharper (which is the best interpolation method for reductions)Just keep in mind that text becomes unreadable below 9 points on screen and below 8 points on paper, so no matter how you resize if your text gets smaller than that there is no way around it.You can read more about resampling from the link below and there is also a link to Sharpening images in that document.