I get the feeling this is another trick question.

What are your tools of trade?

It's not. ;)

It depends, but I usually take a dagger with me.

I also had some mushrooms I found in the forest and got really tripped for a short time! Haha, you should try some too. ;) But not too many...they can be deadly.

Is it American McGee's Alice 2?

I only played 1, but a dagger and a fairytale setting sound like this could be it.

Nope. Another tip, then I'll have to be heading off for today.

If you look at the lake, you might see a Loch Ness monster emerge from time to time. How extraordinary!

King's Quest 1?

Nope!

Easy one, Hero's Quest/Quest For Glory I: So You Want To Be A Hero.

Yep, you win this round! :)

Next one:
You were born an orphaned ethnic baby into a world of poverty and despair.

Raised by a pack of squirrels, you can't help but love nuts.

One who laughs in the face of danger, you have never stopped laughing.

...you see a glimmer of light in the distance. You poop yourself.

This is your story.

OK...

Can you describe your physical appearance?

We thought the book would be closed for good.

We thought this day would never come.
We were wrong.
...that it would spell certain doom for the living if it was ever stolen.
Wielding its great power, ... sought to destroy all life.
With the crystal shattered, ... freed from prison.

Some say ... will come back for us...
That, I can not believe.
...and I don't know how I ever could.

I could, but instead gave another clue.^ Also, you aren't allowed to guess this one.(Possibly a fourth wall breaking hint for others. o_0)

Sanctuary RPG?

Yes, your go.

Also, I'm quite enjoying it. Thanks much ZFR.

Someone can take my turn if they want.

Since no one stepped up:

Help! Can anyone help me to learn the language of the lizards? I've found a dictionary on the internet, but I'm wondering if there is an in-game way to learn it. I can try and ask them about few words, but that barely covers the basics.