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 From https://web.archive.org/web/20190513111011/http://www.transkids.us/faq.html#common

 What are the two types of M2F transsexual/transgender? 

Its always been acknowledged in the scientific literature that there are two groups of transsexuals/transgender. In different classification schemes these are referred to as primary and secondary, early onset and late onset, true and marginal, core and non-core, ego-syntonic and ego-dystonic, and homosexual and autogynephilic. The first group is similar to homosexuals in development and are most commonly gay boys before they transition, and the second group is similar to heterosexual transvestites in development and most commonly transvestites before they transition. We therefore prefer to use the homosexual/autogynephilic terminology because while the others characterize the two conditions, this terminology articulates the nature of the two conditions and is etiologically more descriptive. 

Homosexual Transsexuals/Transgenders (HSTS) are transsexuals/transgenders who transition young principally for social reasons. As boys they are very feminine and have a difficult time socially, romantically, and sexually, so they transition to fit in better and have more normal lives in those three areas. They are etiologically similar to homosexual boys with commonalities in childhood and adolescence. HSTS sexuality is uncomplicated, typical, and unconfused, they are simply attracted to and desire relationships with men. They tend to view transition as a way to facilitate other life goals such as being regarded as normal by peers, having an easier time getting relationships with boys, etc. 

Behaviorally as boys, they come off as obviously queer or feminine gays, not straight acting, but not necessarily flamboyant. Their early and extreme feminine behavior is always noted early in life by parents, schools and peers. They will only transition if they can pull it off successfully to the extent that no one would suspect that they were born male, because their aim is to become better adjusted in society. If people could tell they were TS after transition, they would be more socially marginalized then they were before. Given these practical concerns, if the decision to transition is actually made then it will always be in adolescence and they are substantially smaller and more feminine in build then average males, otherwise they would not be able to be physically female enough to be more successful as women then they could be as men (but of course if they were successful and well adjusted as males it wouldn't occur to them to want to transition, they would simply be gay). HSTS start out as homosexual, gender variant, not very well adjusted or socially and sexually successful boys, and hopefully end up as heterosexual, gender normative, well adjusted and socially acceptable girls. Homosexual transsexuals/transgenders can be characterized as being both feminine and simultaneously very self selecting for the liklihood of success if they choose to live as girls rather than as gay boys. The objective of transitioning is to improve social and sexual functioning in adulthood.

Autogynephilic transsexuals/transgenders (AGPs) on the other hand, transition to satisfy an intense internal urge to be the opposite gender. This urge is sometimes described as a paraphilia, a fetish, or an inverted heterosexual drive where they, attracted to women, want to become the objects of their desire. They are attracted to the female physical form, so their core sexuality is heterosexual (as men), but since their preferred object of desire is not another person but themselves, they have a very atypical and complicated sexuality. They often find it confusing, and mysterious, and while they are in the vast majority of cases originally attracted to women, their perceived sexual orientation may shift. They are not physically attracted to men but may be interested in men for other reasons, to complete their autogynephilic fantasy of themselves as a woman. Autogynephilic transsexuals/transgenders are etiologically similar to transvestites. They tend to view becoming a woman as a life goal in and of itself, one they are willing to abandon important features of their life such as a wife or children, job, and being seen as a normal person in order to accomplish.

Behaviorally as men, they tend to be averagely masculine, straight acting heterosexuals. They can potentially transition at any age though most transition as adults. Unlike hsts who are never very successful socially as males, agps often marry as men, have biological children with their wives, and lead successful lives as men before they transition. 

Physically they are averagely male in appearance until transition, and rarely pass in a truly convincing way as women, which is not nearly as distressing for them as it would be to a hsts because their reasons for transitioning do not depend on how well they are going to be socially adjusted after they are finished. AGPs typically start out as heterosexual, gender normative, socially acceptable men and end up as homosexual (lesbian) or bisexual, gender variant, less than socially acceptable women, but given the specifics of their disorder, they are often still happier as female then male despite being less well off by most objective measures.

Aren't you all just flaunting your passing privilege and telling other transsexuals/transgenders you're better than them because you're cuter?

This kind of perception is very common amongst transsexuals/transgenders who are motivated by autogynephilia and the desire to acquire femininity and is typical of how hsts issues are re-interpreted within a transsexual/transgender context which has meaning to autogynephilic transsexuals/transgenders and not to homosexual transsexuals. 

In the often somewhat oddly "reversed" context of autogynephilic narrative, femininity is redefined in terms of status and heirarchy, as a personal goal and not as a connected social history. 

Casting transkids as "privileged" because they are defined socially as feminine is a reversal of how things work in the non-transsexual/non transgender world where femininity grants less social privilege, not more. In a paraphilic value system where femininization is the objective then it can be seen how those who are spontaneously feminine would be considered fortunate but the relationship of homosexual transsexuals/transgenders to concepts of "passing", attractiveness and femininity are simply very different from those of autogynephilic transsexuals/transgenders. 

Being a member of a very devalued social class from a very young age is not a privilege, it is a huge social liability

It is true that being a feminine man does reduce social privilege, in comparison to being an unfeminine man, and of course, being a woman does reduce social privilege compared to being a man. However in the case of women, femininity is socially rewarded and masculinity is socially punished. This is functionally arguing that cis butch lesbians are the most socially privileged of all women, which is obviously false.