Create background filled with black gradien and write anything on it:

Copy your layer Layer > Duplicate Layer. Now activate your text layer and make Rasterize and apply the following filter  Filter > Stylize > Wind.

We have to apply that filter on every side of our text so now we are goting to rotate it Edit > Transform > Rotate 90 Degrees CW and press Ctrl+F. 

Now do Filter > Blur > Gaussian Blur

Copy this layer and select Overlay. Then select Filter > Distort > Ripple and glue this 2 layers by pressing Ctrl+E

Then create new layer and apply Color as show below:

Now create a new layer below our text layers to create a smoke. You can use the instrument Smudge tools

Now return to our first text layer and apply Layer > Layer Style > Bevel and Emboss

Change out text to red color and that's it :)