Offensive Terminology

From Transcyclopedia

There are several terms that are thrown around in the community that can and often are very offensive. Avoid using these terms if you would like to avoid a confrontation or an uncomfortable situation.

Drag Queen
Since most people have the misconception of all cross dressers being homosexual or they simply are unaware of what a drag queen really is, this term is usually used for any male wearing female clothing. In reality, this can be very insulting to the transgendered individual. It implies the person is gay and just playing around. In many cases, a trans person will be insulted by this phrase. So, be careful of it's use.
Shemale
This term is probably the most insulting of all of the words used to represent transgender. This term comes from the pornography industry and implies that the individual is a sex worker. Many people have only been exposed to transgender by porn sites on the internet and think that's what all transgender people exist for. In reality, transgendered people are just people trying to be themselves. It has very little if anything to do with sex. Avoid this term at all costs.
Tranny
Sometimes used to refer to transsexuals as well as automotive transmissions, this term is frequently viewed as degrading to many in the community. To many it's viewed as reducing a person to the form of an object. Unless you're a member of the community or you know that the trans person is ok with the usage, try to avoid this one too.
Pronouns/Names
you can very quickly insult a transgendered individual by using the wrong pronoun or name. When this happens it's like a slap in the face. It suggests you do not respect who the trans person it at all. If you're worried about using the wrong pronoun or name, the easiest way around it is to just ask. No one will be offended and you know for future reference.