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best way to hand cut a stamp from a full sheet

I have a stamp that I need to send in for my master set. The stamp is kinda in the middle of a group of other stamps. Was planning to carefully use a straight edge and an exacto knife to make as clean and neat a cut as possible. Is this the best way to cut the stamp out? Should I cut just a bit outside the dashed lines that encompass the stamp, if so, how far out, maybe a sixteenth of an inche of so? Never cut out a stamp before.

Tks,
Al

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