Your explanation is a bit mixed up: we assume $A_n$ and derive $A_{n+!}$, but by itself this is not enough to deduce either $A_n$ or $A_{n+1}$. What you're missing is that we need to prove $A_n \Rightarrow A_{n+1}$ for all $n$.
Suppose I want to show that the number $5$ is bigger than $1$.
Since $5 = 4+1$ is bigger than $4$, we'd be done if we could show $4 > 1$ (because then $5>4 > 1$ so $5 > 1$).
But since $4 = 3+1 > 3$, we'd be done if we could show that $3 > 1$, because then $4 > 3 > 1$.
Since $3 = 2+1 > 2$, we'd be done if we could show that $2 > 1$ likewise.
But $2 = 1+1 > 1$, so we are done.
Induction captures this as a general method. If we want to show $A_n$, it is enough to show both $A_{n-1}$ and $A_{n-1} \Rightarrow A_n$; it is therefore enough to show that $A_{n-2}$ and $A_{n-2} \Rightarrow A_{n-1}$ and $A_{n-1} \Rightarrow A_n$; and so on all the way down to:
It is enough to show that $A_1$, and $A_1 \Rightarrow A_2$, and $A_2 \Rightarrow A_3$, and … and $A_{n-1} \Rightarrow A_n$.
It is therefore enough, if we want to prove $A_n$, to show that $A_1$ is true and that for every $k < n$, $A_k \Rightarrow A_{k+1}$.
Or, if we want to prove that $A$ holds for all $n$, it is enough to show that $A_1$ is true and that for all $k$, $A_k \Rightarrow A_{k+1}$.
How can we do that? We must prove $A_1$, and then once we've done that, we can assume $A_k$ and attempt to prove $A_{k+1}$. This is in the same spirit as, in proving "$f(x) = 1$ implies $f(x)+1 = 2$", saying "Assume $f(x) = 1$. Then adding one to each side, $f(x)+1 = 2$, so we are done": to show $A \Rightarrow B$, it is enough to assume $A$ and prove $B$.