When I first started looking into installing my own moodle six months ago, I didn't realise what a daunting task it was going to be, and reading some of the posts here I am not the only one that gets confused especially if they happen to be individuals trying to set up their own moodles.
First step is obviously to check up the installation instructions in the moodle documentation. Unfortunately I do believe these instructions assume that you are already some education institute established with your own server, domain, website, and static internet connection.
So what does a newbie need?
A server. What is a server? A separate master computer loaded with a special server software, popular is linux or freebsd. Such as a Ubuntu 14.04 server.
Another computer to do all of your other work
A domain. for your website address.
An interesting link for the newbie http://www.instructables.com/id/Making-Your-Own-Completely-Free-Website-And-Serve/?ALLSTEPS