We will start by creating the Photoshop Document (File->New). The width and the height of my document are 480x250 pixels.

This text looks good on darker background so we will try it on “#17252d”. Fill the background with this color (Edit->Fill).

Now we start writing something. Take the Text Tool (T) and write something down. I used “Eras Bold Italic” Regular of 127 pt for my design. The color of the text at the beginning is black (#000000).

It’s time to go on the layer style pallet (Layer->Layer Style).

First, we will use the gradient effect to create a soft effect for the letters. Use the default colors (#000000 #ffffff):

Now it is time to add some color to the letters. We will use red. Santa Red (#ff0000):

The interior of the letters is done. It is time to focus on the border :).This will be done by the outer glow effect using the same Santa Red (#ff0000):

We will go insane with red now! Use the same red as above for the inner glow effect:

The effect that we want to use to make this text stand out is Bevel and Emboss. Used properly it can give us cool effects! Use the default colors and chose the right bevel filters as shown in the pictures below.

The final part is adding the drop shadow effect to make it stand out more.

And you’re done! Have fun with your new text effect.

Here is the Photoshop PSD File. Donwload here.