Trained By: Baker, Butcher, Cobbler, Tailor
First, you can not hide when you are in war mode or when you are mounted. You also can not hide if there is one or more hostile creatures locked onto you.
Assuming the above conditions are met it is easy to hide. Your sprite will turn grey and you will receive a message indicating you have hidden yourself well. Unless you have the Stealth skill you will not be able to move while hidden. Moving, going to war mode, attempting to cast a spell, mounting a horse or other creature will bring you out of hiding.