First thing you should do before starting the main steps is to make a new document, sized 400x400 (px) with transparent background.
Background design
Choose the 'Gradient tool' and click on the gradient icon on the top bar that will be shown when you choose the gradient tool. then, double click on the color tag and it will take you into the color picker window.
Enter the values shown in the image below.
Click and drag the mouth all long through diagonal.
Next, make a new pattern layer and choose a blacktransparent horizontal lines pattern from your patterns.
I f you don't have one - make ones or just google it and I'm sure you'll find tons of photoshop patterns.
Next thing you should do it adding a layer mask to the pattern layer (make sure the pattern layer is selected in the layers window).
For making it a bit more interesting, choose the 'Eraser Tool', set the foreground color to white (#ffffff) and choose from the top bar the brush mode from the mode list.
Choose from the brush list the 'airbrush soft round' (65px) and don't change the default values.
If you want it to be softer, so play around with the opacity of the erase brush.
Now, just start erase some random parts from the pattern and you're done with this part of the tutorial. the result should be like below:
Text styling
Choose the horizontal type tool and make a new text with bold font. type whatever you want. I typed "megical text" (I know it's 'magical', I just made a quick mistake but I think you'll be ok with this..).
Here're the values I chose for the text:
Font name: Futura XBlk BT
Font size: 38 pt
Mode: smooth
The color is not really matter because we're about to change it with the fx effects for the text.
After you have the basic flat text, you need to add effects to it such as gradient overlay, outer glow and inner shadow.
Follow the next images and copy the exact values.
Inner shadow values:
Outer glow values:
Gradient overlay values (double click on the color tag and then change the values in the '#' filed to the one shown below):
After you done it, the general result should be like this:
Magic effect
Choose the Pen Tool (P) and choose from the top bar the paths option.
Start drawing the path. make it as smoother as you can. this will look better this way.
Open a new layer (shift+ctrl+N) that will be placed above the text layer. name it "path1".
Choose the brush tool and then click on the toggle the brushes palette option from the right side of the top bar.
After you clicked the 'toggle the brushes palette' icon, a new window will be shown.
Click on the 'brush tip shape' option from the list in the left side of the window, then choose soft round 9px brush from the brushes thumbs.
And copy the values from the next image to your window:
Click on the shape dynamics from the list and copy the values from the below image:
Click on the scattering option from the menu and copy the next values:
You are done with the entry of the values till now. I'm sure you're happy with this..
Next thing to do is simply apply the brush you edited just few moments ago on a new layer.
Choose the pen tool (P) again, right click on the path and choose the stroke path.
Don't forget to check the simulate pressure option before you click OK.
After it's done, apply the next 2 effects on this layer:
Outer glow (color is #ff49d6):
Color overlay (color is #ffeefe):
Click on the 'new style' button so you'll not be needed to do the same action when you'll use this exact layer style in the next step.
Open a new layer by going to layer-new-layer and name it "path 2"
Choose the brush tool again and click on the 'toggle the brushes palette' option from the right side of the top bar.
This time, use the 'brush tip shape' option only (!) and enter the next values:
brush name: soft round
diameter: 5px
spacing: 1%
Then, choose the pen tool (P) again. right click on the path and click on stroke path.
Again, like the last time, make sure you check the simulate pressure option before you click OK.
After it's done, apply the style you did in this step.
Duplicate "path 1" layer and locate it under the text layer. the layers order should be like below:
Now, select the top "path 1" layer, choose the rectangular marquee tool (M) and make a selection like the next image.
Then, hold the shift key and select one more selection. then just press 'delete':
Last touch ups
Choose the Gradient tool (G). a new top bar will be shown. copy the next values and options:
Click on the gradient icon with the arrow on the left of the top bar and change the parameters to the ones below:
When it's done, open a new layer and start dreating small circles with the gradient tool.
This is it! You're done.
Here's my final result:
More Tutorials: 
