Mix salt and flour together, then add water a little at a time. Knead 7 to 10 minutes until dough is smooth and putty like.
Roll dough about 1/4 inch thick and cut out with cookie cutter. Poke hole in top for the thread; decorate shape with other small pieces of dough; then bake on cookie sheet until light brown in a 325 degree oven. (You can air dry 48 hours on a window screen.)
When cooked, paint or varnish to protect ornament from moisture. Hang on your tree.
Note: Dough can be shaped into baskets, candle holders, or whatever you like.