You can create your own word shortcuts on the iPad keyboard by following the directions below. You can click here for a list of stock and third-party iPad keyboard shortcuts such as "⌘T to open a new tab".
To create your own word shortcut (e.g. Typing "LOL" translates into "Laugh out loud"):
1. Go to Settings > General > Keyboard
2. Tap the "Shortcuts" panel
3. Tap the blue + button in the top right hand corner
4. Type the phrase you want to use (Laugh out loud)
5. Type the shortcut (LOL)
6. Tap "Save"
Now when you type "LOL" your keyboard will give you the option to select and use "Laugh out loud" instead.