[quote=@dragonmancer]
[@Etcetera] So instead of quotes what we say is actually in character, and you use some kind of character like '*' to signify action or something like that?
[/quote]

Correct. Actions are done in a combination of persons—similar to a third person with no object indicator when referring to self. So instead of *I hit you,* it would simply be *Hits you.* But *I hit you* is also acceptable, and you may want to use it when it sounds better. It's best to play it by ear.