Tutorial: How To Create Extreme Bloody Text
Open up a new document and add your desired text in white;
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Add these blending-options to the text;
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It will look like this;
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Then grab some decent blood-brushes. You can find some at Deviant-Art
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Change the blending-mode to multiply.
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Then, while pressing CTRL, click on the text layer, and then, choose the blood layer, then select inverse, and press delete.
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DONE!