You can step away from the enemy to break from action, hit transference, and then resume if you want to use transference in combat. Should always work. Plus the combination of Transference, Aegis, and then Judgement on a swarm of enemies, we can recover several 1000 HP (aika online gold) just through 1 hit of Judgement.
Has been surprisingly effective in PvP too. Only shame is the cool down times for everything but Judgement. Shorten cool down times for some skills and Paladins could be beast in PvP.
One point in
Just need the paladin to take initiative and command the party well (Use the marking system for party leader, default is Alt and any number, to tell your members which mob you are hitting and concentrate the firepower). Also, learn to walk (literally) and lure the mobs one by one in higher level dungeon such as Lost Mines.