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[ Control Panel ]

Step 1
Create your text, just click and type whatever you want.

Step 2
Highlight your text and change the color to any form of red or orange you want, if it is not already that color.

Step 3
Right click on your text layer and go to Blending Options, then add these settings:







Once you have done that it should look something like this:






Step 4
Now right click on your text layer again and choose Rasterize Layer.

Step 5
Choose your smudge tool, it looks like a hand pointing down at an angle. Once you have done so use these settings:




The brush you should be using is just a size 9 of the basic brush set which is default with Photoshop.


Step 6
Now you must take that smudge set and click in the red area of each letter near the bottom and pull it down a little then release, you may understand what i mean when you see the example, do it for each letter:






Step 7
Finally you can go to Filter -> Brush Strokes -> Accented Edges and leave it with default settings, and you will be done with this:

FINAL:








Step 8
Or you must go to Filter -> Brush Strokes -> Accented Edges, and then Filter ->Sketch -> Water paper, leave both at default settings.

And get this: