Create a VM and configure security groups with defined Inbound and Outbound rules like letting traffic through HTTP, ICMP, TCP,SSL(TLS).

 First create a key pair with .pem file format

Now your key pair is created

Next create an instance

Now the instance is successfully been created

Select the paticular instance and check the security group id and make a note of it

Select the security group with the same instance id and click edit inbound rules. Add the rules such as TCP,HTTP,TLS AND ICMP

The same process is done for outbound rules also allowing the traffic in both. Then click Save rules. Now our  VM has been created with the given security groups configured.