Welcome to Priya's Paradise
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I am using Photoshop CS2.This tutorial works for other versions too with little variation
Storke effects are the simplest but it defines and adds some beauty to your graphic.
First open a new document and type your desired words.for example:

Looks plain and boring lets apply stroke to it.
Go to Edit >> Stroke. a pop up box will appear like this one.

width is the width of the stroke and you choose the color of the stroke by clicking the box of color next to color.You can choose if you want the stroke inside,center or outside by choosing one of the radio buttons. and you can try and mess with blending to your desire ,I usually leave it like that.after applying that effect this is what you will get.

Lovely! next lets do some thing else.go to edit stroke again and select some thing like this.

And you will get something like this.

Some other effects::
Go to Edit >> stroke

And again Go to Edit >> stroke

and you end up with something like this.

Remember to select the layer before you apply stroke.You don't want to go and apply the effect to the wrong layer and wonder where has the stroke gone.
If this tutorial helped you.Please do link me:)
