Step 1: Create a new document and place your photo in the center of the document, you can download the image I used here

Step 2: The main color of this image is blue but I don't like it ^_^, so I change the color by going to Image > Adjustments > Levels in the Channel drop-down box choose Blue and adjust its parameters as shown:

Step 3: Brighter the photo a bit by going to Image > Curves

And we get

Step 4:  Press Ctrl-J to duplicate this layer, blur it a little by going to Filter > Blur > Gaussian Blur and set the Radius to 5 pixels

Step 5: We will turn this layer into the glowing light around the sword. Go to Filter > Stylize > Glowing Edges and use these settings:

 The edges' sword are now very glowing

Step 6: Change the blending mode of this layer to Screen, our photo now looks like this

Step 7: If you want to make the lighting effect more impressive then go to Filter > Distort > Ocean Ripple, set its parameters as shown:

Remember if you don't set your duplicated layer to Screen, you can't see the effect

Step 8: Change the color of the light by going to Image > Adjustments > Hue/Saturation. Use these settings to turn your light into red

Here is the image after this step:

Step 9: Grab a small, soft brush (the brush with low hardness) and clear the light on the handle of the sword

 Step 10: Next, we will add some flames on the sword with this image

 Paste this image on a new layer and change its blending mode to Screen, the black areas are totally wiped out

Step 11: Use the Transform tool (Edit > Transform) and the Move tool to make the flames burn around the sword

You can continue adding some effects like Lens Flare, Wind, Zigzag... on the image, it's up to you to photoshop!

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