You get lost on an island, and you don't know how you got there, but you lost all of your stuff! You have to find all of your stuff and find a way off of the island. This is only a demo, so there is currently only one fight.
You are not logged in.
If you log in before playing, you'll be able to save your progress - which means you can come back later and pick up where you left off.
To get to the one fight, speak to the wise man and ask for your stuff, then go into town and head north. (North is only unlocked once you speak to the wise man)