1.) Open a new document to the required size. I will be using 500x500 with a white background. Set the resolution to 72.dpi as anything bigger is wasted online and slows up your hard drive.

 

2.) Now what we need to do is give some texture to the page, this is very important, imagine it to be like smoke particles floating around that can absorb color. Its very simple just do this

Go to Filter -> Render-> Clouds

3.) Your image should now be similiar to this, notice that it isnt a flat image, its made up of tiny little  variations of clolor just like fire would be.

4.) Now we want to make it a little more effective so if we overlay another set ny doing this

 

Go to Filter -> Render-> Difference clouds

5.) Your image should now be similiar to this - more sparse but more realistic.

6.) To maximise the effect repeat step 5, keep going untill you are happy with the style its up to you how long you keep going for. You can create allsorts of materials this way from water to fog, 

An easy way to do this is to press
crtl/Apple F .

I repeated step 5 about 10 times to produce this


7.)Now here comes the fun part. We are going to add some color on to the particles/ clouds.  Go to Image -> Adjustments -> Gradient map
8.) Now click on the gradient bar to apply your own personal settings.


9.) Now select a gradient similiar to the desired colours. In this case I chose the circled gradient

You can use any combination of colors and nothing is precise which makes it so so easy ,

10.) Go to the bar at the bottom and modify and add your colours. There is no need to supply colour references here, as this can be altered to make a number of different effects.

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