Transgender is an umbrella term that covers all the various sorts of people that have some degree of gender dysphoria or deal with gender, in a different manner then 'normal'. It includes tranvestites, transsexuals, crossdressers, drag kings, drag queens, and genderqueer people. Intersexed people are sometimes included in this catagory, as well.
Transsexuals, on the other hand, have a severe amount of gender dysphoria, such that they wish to, or choose to transition to the opposite gender. Basically, for me, as an male to female transsexual, i found that i have a female mind and gender identity, but was stuck with a male body, at birth. For female to male transsexuals, it is the other way around.
Do realize, however, that not all transsexuals choose to transition. There are various reasons for this, including, but not limited to, age, medical conditions, and $. Either way one goes, it can be a very rough journey.
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