I am relatively new to Arkham Horror the Card Game, and I can find no references to

how to parley.

Parley only shows up as a designator on cards' abilities. Most often, they are abilities on enemy cards (and occasionally on Story Assets) that let you interact with the enemy or character. Parley actions vary a lot -- sometimes they're skill tests; sometimes they require discards or resources; sometimes there's no cost at all, just an action. The most important thing about them is that Parley is one of the four kinds of actions that do not provoke attacks of opportunity .

Thank you, I feel i am doing this right.

Notable exception to that is this card that denotes that playing it as an event for its test and effect is a parley action:
https://arkhamdb.com/card/04105

Parley is a special type of action, it does not cause attacks of opportunity.

Parley only appears as part of special mechanics that trigger it, usually via scenario cards. There is no baseline Parley action.

The only known cards in the player cardpool that have parley mechanics are: Fine Clothes. Persuasion.