1. Make a new file, 500x400, follow picture on below
2. Press "D" on the keyboard to set default colors, and fill it in blank picture in with black, follow picture below
3. Take the lasso tool, and draw your letters, follow picture below
4. Go to Filter, Blur, Gausian Blur, and you can range from 6-8, it differes with size, for this size, i prefer 7.3, follow picture below
5. Go to Filer, Artistic, Plastic Wrap, put the Highlight Stregnth at 20, Detail at 8, and Smoothness at 9, follow picture below
6. Finished product
7. You can make it all "firey" by going to Image, Mode, Greyscale, then, Image, Mode, Indexed Color, then Image, Mode, Color Table, and select Black Body and press ok, look at picture below
