In this tutorial we will go over how to create Neon Letters.
First, open a new file in Photoshop.
I chose the following sizes:
Select the Text 
tool from the tools palette.
Select the Foreground color by clicking on the box in the upper left corner.
In this picture the foreground color is red:
Choose the following color by using these settings:
Enter text of your choice with the following settings:
Click on the Channels Tab in the Layers palette and select the Blue Layer:
Command 
and click the box on the Blue Layer to select the text:
Go to Select > Inverse
It will look like this:
Go to Filter > Render > Fibers
A window will then pop up to tell you to rasterize the layer, click OK.
Use the following settings:
Click “OK”
Click on the RGB Layer to make all the Channels visible.
Click on the Layers tab to return to the Layers.
Command D to deselect.
Ctrl click on the layer to bring up Blending Options.
In the Blending Options window, use the following settings:
Click “OK”
Command and click the box on the Layer to select.
Go to Select > Modify > Contract
Use the following settings:
Click “OK”
Click DELETE.
Command D to deselect.
Ctrl click on the layer to bring up Blending Options.
Select the Outer Glow and use the following settings:
(the color stays the same)
Select the Inner Glow and use the following settings:
Click on the color box to bring up the Color Picker and use the following settings:
Click “OK”
Select Filter > Render > Lighting Effects
Adjust the circle around the text:
Click the color box.
Use the following color settings:
Use the following settings in the Lighting Effects:
Click “OK”
Here is the end result:
