In this simple Photoshop tutorial you'll learn how to design a really cool burn-in effect using the text tool, some graphics, and some layer styles. This is the final result I got following the tutorial.
1. Create a new document. Start by creating a new document in Photoshop. Although any size will do, for this tutorial I will be using a size of 600 x 300 pixels with the default resolution of 72. After this, you may want to choose a nice background for your canvas, I used this nice wood texture.
2. Create graphics. The main graphics have two parts, the text and its outer border. Which part do you want to do first? I think it's better to do the text first and then we can make the border the right size. Use the horizontal text tool to write the text you want, preferably short if possible.
In the image above you can see that I used a font called Impact in size 200pt. Of course, you are free to choose the color you want for the text at this step. After that comes the border of the graphic. Find and use the Rounded Rectangle Tool, then set yours to be the same as mine.
Now you use the tools set above, create a new layer (beneath your text layer) and draw a suitably sized shape that goes around the outside of your text layer as shown below.
Next, change the fill opacity of this layer to 0% and apply the following Stroke layer style:
Your graph should now look like this: