
2. Use the Horizontal Type Mask Tool to type in your text.
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3. Press Ctrl+C, followed by Ctrl+V, to copy the selected area into a new layer.
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4. In the Blending Options window for the new layer, enable Inner Shadow, with its default settings. If the image looks really bad after that, you can try playing with those settings, but this depends on the image you’re using, as usual.
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5. Now, adjust the Brightness and Contrast settings for the text layer to negative values, somewhere between -20 and -60, depending on the texture you are using. I used -150 for Brightness, and -50 for Contrast, because the texture chosen wasn’t such a good idea…
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As a final hint, I suggest you to try the tutorial about creating a rusty texture in Photoshop, I am sure the punched text would look simply great using that texture, and you’ll also get to learn something new, if you missed that one when I posted it…
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