Q: WHY DOES PHOTOS KEEP 2 IMAGES ONE IN ALL PHOTOS AND ONE IN MY FOLDER I MADE?

1 - you need to fix your cap lock - posting in All Caps is rude and very hard to read

2 - you need to learn how to post - you posted a photos question in the iPhoto forum - tow totally different programs - I will request your post be moved

3 - you need to learn how photos works - it is a database application and has no duplicates - all photos are in a library and can be views in many different ways but no matter how manny albums (once again Folders can not view photos, only albums can) a photo is in there are no duplicates - simply different views of the single photo in the library - multiple windows into the same room

LN

I have been putting them in folders and albums but i noticed that the pictures are still in the top folder that says all pictures?

Photos is providing many different views of the same photos, so you can easier find the photos you want.  The photos are stored once. And the different predefined albums are grouping the photos according to different aspects.

You can built on this structure by creating your own albums and folders of albums.

Have  look at the Photos Help: https://help.apple.com/photos/mac/1.2/?lang=en#/

In particular: https://help.apple.com/photos/mac/1.2/?lang=en#/pht56eafa987

http://netiquette.wikia.com/wiki/Rule_number_2_-_Do_not_use_all_caps

LN

You are welcome. We are all here to help.