Originally posted by xx:

Parry with non- tower shields and two handed weapons. Parrying just with the dagger and you will go back to Valhalla quick fast in a hurry.

Actually, you can parry with the dagger as well as with allot of the other weapons. Thing is... if the enemy is strong, or a 1*/2* one... it is good to have a shield handy to pull out to parry with.
I run around right now, for most of my building and such with a Dagger and the Fenris set... works pretty well for everything that is not Plains, and even Plains I can kill Deathsquitos or Fulings die fast. But if a Fuling Berserker comes around or any * Fuling... I pull my shield and I am golden.