For this, an example. Here, the first word was
Word
Now, the next person must use those letters in a new word, putting the used letters in parentheses to let the next one know. Here, I would go
(Wor)ke(d)
Now there, you see that two letters were not used from the previous word, the two not in parentheses. The next person has to use those two letters in another word. If you can't use them in one word, use two or three. But don't do it just to make it harder for the next person.
Time for the true first word.
Five