This effect is very useful for those who love to photograph cigars/cigarettes for a hobby, commercial ads, or just like to play around with smoke/fire type effects.
Sometimes it can get real messy photographing a real lit cigar and smoke so this can be an alternative.
One my of favorite hobbies on Photoshop are creating fake product ads just for the heck of it, and this was one I did awhile ago.
Select the elliptical marquee tool and draw a circle around the bud area of the cigar and copy and paste that area. Ctrl+C, Ctrl+V.
Double click the layer which you just copied and open up the layer style. Were going to add 3 styles to this layer.
Outer Glow: Give this outer glow a blend mode of "color burn", give it some noise about 75% or so.
Inner Glow: Give this style a black inner glow and size of 25px.
Now here is were the lit effect will appear, first blend this layer to Overlay then give it a gradient from black to red. Your cigar should be lit now.
Now create a new layer and name it smoke, and go to the link below to download Falln's Stocks smoke brushes, he makes very awesome ones.
After you downloaded just paint the smoke above the lit area of the cigar and there you have it!
Here's my finished product, I turned it into an ad.
More Tutorials: 
