Each day you recieve 25 Forest Fights, or if you have a horse you receive 6 more. Every child you have gives you another Forest Fight.
When you choose "(L)ook for something to kill", most of the time you will fight a Forest monster and use up one of your forest fights, but other times, one of the following events will occur.
Angels: Some days, your very first event in the forest will be hearing angels singing. You will find a number of gems after following the sound for a while, no more than the number of your level. This event only ever occurs immediately after entering the forest.
Pretty stick: An old man hits you with it, and gives you 5 charm.
Ugly stick: An old man hits you with it, and takes away 1 charm.
Dwarf: offers to play blackjack with you. Max wager is 5000 gold.
Olivia: When you start a new round, you'll encounter Olivia the severed head. Your first encounter will just be to meet her. After that she can be used for getting into high spirits or she will tell you which tower the prince or princess is in.
Tower rescue: sometimes you'll see a dead bird with a scroll tied to its leg, and you'll have to choose which location you think the prince/princess is at. If you've talked to Olivia, the place she names is always where the prince/princess is. If you guess wrong, you have a 50/50 shot for each location of getting either the Holl or two people playing chess. If you select the correct destination, you receive gems equal to 3x your level, as well as exp equal to (30 X lvl X lvl).
Gems: sometimes you will find a single gem.
Merry Men: you are automatically healed to full HP for free.
Old Man: You may encounter an old man asking directions. If you take him yourself, you gain a charm point and gold equal to 500*level, but lose a forest fight for the day, every time you take him. If you refuse, nothing happens.
Old Hag: the old hag demands a gem from you. If you give it over, she will give you an extra HP. This is extremely useful at the lowest few levels, but more of a waste of a gem above level 4 or so. Beware, if you give her a gem when you are not fully healed, she will only heal you. If you try to give her a gem when you have none, she will get mad and reduce your hit points to 1. If you simply refuse her, nothing happens.
Skill Event: No matter which class you are, you will encounter your skill events randomly in the forest. These are opportunities to gain extra points in your chosen class, without having to level up. For Thieving class, you meet the Master Thieves and hope you have a gem on hand to toss them. If so, you earn your point. For Mystical class, you must successfully guess a number between 1 and 100 in six guesses or less. The methods for picking the correct number vary, but one of the most accurate is the Tikel Method. For Death Knight class, you have to choose whether a person is guilty or innocent (50/50 chance).
Fairies: The fairy encounter screen will give you a choice between trying to catch a fairy and simply asking for a blessing. There are 4 blessings: a kiss (heals you), a horse, learning fairy lore (exp earned = 10 X lvl X lvl), and a sad song, which makes you cry and your tears turn into 2 gems.
Bag of Gold: you may find a bag of gold in the forest, with a small amount of gold in it. This is very handy at the lower levels.
Hammerstone: You find a stone and break it in half with your (current weapon), receiving +1 STR.
Understanding pedals and dew: You stumble upon a refreshing garden. Your HP are restored to maximum and you receive one extra FF. You may also arrange the flowers to resemble (type) a short phrase.
Blank event: Sometimes you'll hit L to Look in the forest, but all you will get is another forest prompt.
The Red Dragon: Once on level 12 you may (S)earch for The Red Dragon from the forest