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Select the first text layer ( in my case the layer " TALK" it is the middle layer from your layer palette
This very short tutorial is to express my belief in the fact that default layer effects settings in photoshop are really bad. Each setting (bland mode, size, angle, etc) should be always carefully tuned to fit into general style of your design. Shown left is 2 text layers with 2 effects, drop shadow and bevel. Here I simply turned them on...
The best part about it, is that it is done using no more than 1 layer . You better believe it!
"Punching" text or a shape through to a lower layer in Photoshop is pretty simple. To visualize what exactly this is, think of two sheets of paper. A black one on the bottom and a white one on the top. Let's say you took a hole punch and put a hole in the white paper that is on top. Now you would see a white piece of paper with a black hole in it. We can create this same effect using the "knockout" feature in Photoshop.
