There is a lot of discussion over the use of the words "she-male" and "tranny" on the reality TV show RuPaul’s Drag Race. Seeing that people are posting comments on both sides of the argument, here is a list of words from the GLAAD Media Reference Guide.
Gay The adjective used to describe people whose enduring physical, romantic and/or emotional attractions are to people of the same sex (e.g., gay man, gay people). In contemporary contexts, lesbian (n. or adj.) is often a preferred term for women. Avoid identifying gay people as "homosexuals" an outdated term considered derogatory and offensive to many lesbian and gay people.
Homosexual (see Offensive Terms to Avoid) Outdated clinical term considered derogatory and offensive by many gay and lesbian people. The Associated Press, New York Times and Washington Post restrict usage of the term. Gay and/or lesbian accurately describe those who are attracted to people of the same sex.
Lesbian A woman whose enduring physical, romantic and/or emotional attraction is to other women. Some lesbians may prefer to identify as gay (adj.) or as gay women. Avoid identifying lesbians as "homosexuals," a derogatory term (see Offensive Terms to Avoid).
LGBT / GLBT Acronym for "lesbian, gay, bisexual and transgender." LGBT and/or GLBT are often used because they are more inclusive of the diversity of the community. Care should be taken to ensure that audiences are not confused by their use.
Queer Traditionally a pejorative term, queer has been appropriated by some LGBT people to describe themselves. However, it is not universally accepted even within the LGBT community and should be avoided unless quoting or describing someone who self-identifies that way.
Transgender An umbrella term (adj.) for people whose gender identity and/or gender expression differs from the sex they were assigned at birth. The term may include but is not limited to: transsexuals, cross-dressers and other gender-variant people. Transgender people may identify as female-to-male (FTM) or male-to-female (MTF). Use the descriptive term (transgender, transsexual, cross-dresser, FTM or MTF) preferred by the individual. Transgender people may or may not decide to alter their bodies hormonally and/or surgically.
Transsexual (also Transexual) An older term which originated in the medical and psychological communities. While some transsexual people still prefer to use the term to describe themselves, many transgender people prefer the term transgender to transsexual. Unlike transgender, transsexual is not an umbrella term, as many transgender people do not identify as transsexual. It is best to ask which term an individual prefers.
Transvestite Derogatory see Cross-Dressing
Cross-Dressing To occasionally wear clothes traditionally associated with people of the other sex. Cross-dressers are usually comfortable with the sex they were assigned at birth and do not wish to change it. "Cross-dresser" should NOT be used to describe someone who has transitioned to live full-time as the other sex or who intends to do so in the future. Cross-dressing is a form of gender expression and is not necessarily tied to erotic activity. Cross-dressing is not indicative of sexual orientation.
Defamatory: "fag," "faggot," "dyke," "homo," "sodomite," "she-male," "he-she," "it," "shim," "tranny" and similar epithets
The criteria for using these derogatory terms should be the same as those applied to vulgar epithets used to target other groups: they should not be used except in a direct quote that reveals the bias of the person quoted. So that such words are not given credibility in the media, it is preferred that reporters say, "The person used a derogatory word for a lesbian, gay, bisexual or transgender person."
Check out the complete list at https://www.glaad.org/publications/reference