Here is a sneak peak at the final result of this tutorial:

We start off with making a new document, I chose 350 x 350.

It doesn’t really matter how big you make the document, it depends on how big you want your text to be.

Now we grab our text tool and create some text. I choose red and blue for my colours, you can use whatever colours you like.

Now we right click on the text layer and apply these blending options.

Now we are finished!