1. Create a New Document 300x300px with White Background.

2. Type your text with black, I use font FuturisCameoC (you can use other similar font):



3. Select Layer > Rasterize > Type. Now you can select each letter separately and move it or rotate:



4. Now select all letters by Command-clicking to Layer with text:



5. Apply Select > Inverse.

6. Create a new layer and using Brush Tools with Mode - Dissolve paint the Text:



7. Now Delete bottom Layer:



Download .PSD from here.

Good luck, and be sure to check out our other Photoshop Tutorials!