So what exactly does "Farming" mean? Farming basically means; to kill the same type of enemy (or enemies) in an attempt to get a certain goal. There are several types of "Farming", they include; cash farming, magic farming, xp farming, item farming. Each of these are really the same thing with different goals.
Cash Farming: This farming is one of the most common types of farming. Going around to kill enemies for the cash they drop. In WoW this usually means centering on humanoids as they have some of the highest drop rate in the game.
Item Farming: This is similar to Cash Farming, the emphasis is on killing enemies for the items they drop.
XP Farming: If you're at level 60, you likely won't be farming for experience, unless you have a hunter pet to level. This involves the slaughter of anything that yields xp, usually level 50ish elites for maximum xp per unit time. Others prefer mid/high level 50 normals for easier, quicker kills.
Faction Farming: This farming requires the killing of the enemies of the Faction you are trying to become friends with. The most reputation you can gain from killing is to the "n" in honored. After that, furter reputation gains will require completion of repeatable quests.
Farming Techniques:
Bags: Empty your bags as much as possible before you start. You WILL fill them up.
Find a friend: This allows the farming to go alot quicker. It's also more fun this way.
Travel time: Try to minimize the time spent looking for something to kill. All that time running around is time you aren't preparing for the next battle/in battle. The best locations allow you to constantly fight and eat/drink within sight of your next target.
Quantity vs Quality: Higher level/elites will yield more reward per kill, but will also require more time. It's up to you to find the best combination of kill speed and reward.
Location: Sometimes a popular farming spot will be camped by players. When this happens, it's time to find a new location. Sometimes this will mean finding an area with stronger, but less npcs - the reduction in npcs is offset by the increased time it takes for each kill; the first ones have more time to respawn.
Shop: With all the killing going on, your bags will fill up quickly. A nearby shop is great for repairs and selling.
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