First off you are going to need to download the water background used in the tutorial in a .psd format, click here to download.
Now you are to need two documents with the water background in them so just copy the water texture, create a new document of the same size and paste it in that new document. While you are in the new document go to filter > guassian blur and set the setting to about 1.0
Tip: Guassian Blur blends the document together so that when we do our displacement effect it wont be so drastic.
Now go to File > Save and save that document (in .psd format) wherever you want on your hard-drive just remember where you save it too. Now go back to the other document, (without the gaussian blur) and type in whatever text you want, it's best if you use a font that is thick and set to bold, below I used Placard Condensed, set to Bold, and at 72pt font you can use whatever font you think looks cool though.
Tip: Having trouble getting the font size right? press ctrl+t with the text layer selected to get that font size just right!
Now you need to Rasterize the text layer, Right click on the Layer with your text on it and choose Rasterize Layer.
Tip: What Rasterizing does is basically make the text layer exactly like any other layer so you can do filters to it, you cannot edit text after you rasterize it.
Now we are going to use the .psd file we saved earlier, first with the rasterized text layer selected go to Filter > Distort > Displace use the following settings:
When it asks you to select a file, select the .psd file you saved earlier then press ok, if all goes well you should come out with this:
Set the blending mode of that layer to Overlay and apply the following style settings to the layer:
Which should result in:
Hope you enjoyed the tutorial!
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