When using the Type tool, Option (Mac) / Alt (Win) + Shift + up arrow or down arrow will increase/decrease baseline shift.
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When using the Type tool, Option (Mac) / Alt (Win) + left arrow or right arrow will increase/decrease kerning/tracking
When using the Type tool, Command (Mac) / Control (Win) + Shift + < or > will increase/decrease the point size.
Simply clicking with the Type tool will create Point Type (lines of type that have to be manually broken to wrap using the return key). To create Paragraph Type, (type that is flows within a bounding box) click and drag with the Type tool to draw the bounding box. Or, Option (Mac) / Alt (Win) -click in the image area with the Type tool to display the Paragraph Text size dialog box to numerically enter the height and width of the bounding area.
Click in the text entry field next to the font family (on the Options bar) to highlight the font name and use the up/down arrow keys on the keyboard to select the next/previous typeface (if the type is selected in the image area, you can see the type change as you select different typefaces). While type in the image is selected, Command (Mac) / Control (Win) + H will hide the selected “reversed out” type enabling a more accurate preview of the type.
Clicking the cursor within a type block will auto-select the Type layer on the Layers panel. Shift-click with the Type tool to create a new Type layer (in case you’re close to another type block and Photoshop tries to auto-select it). Double clicking on the “T” icon on Layers panel will select all of the type on the layer.
When entering text, you’re in a semi-modal state in Photoshop – similar to Free Transform. However, the return or enter key will break the text to the next line – not commit to it (like it would apply the transformation). In order to apply (or commit the text) use the Command (Mac) / Control (Win) + return or enter.
To change the Type tool’s default options, the key is to close all documents. Then choose the Type tool and select your font family, style, size, anti-aliasing, alignment and color. Whatever options you choose, will become your new default.