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This is a pretty well known topic, but for anyone that just needs to check back to this, it's here 
The Battle Phase can be split into 4 Steps
1.) Start Step
2.) Battle Step
3.) Damage Step
4.) End Step
The complicated one of these is the Damage Step that can be split into 7 different Sub Steps.
The Battle Phase can be split into 4 Steps
1.) Start Step
2.) Battle Step
3.) Damage Step
4.) End Step
The complicated one of these is the Damage Step that can be split into 7 different Sub Steps.
- Start Step:
The Turn player now declares that they are entering the Battle Phase.
The Turn player has priority to activate Spell Speed 2 cards now.
Decide if conducting battle. Entering Battle Phase doesn't mean you have to declare attacks. If you do not, go straight to End of Battle Phase
- Battle Step:
This occurs when you declare attack
The turn player must declare that they are entering the Battle Step.
Multiple Chains are allowed during the Battle Step, but only the first Chain is in response to the attack.
This means that cards such as "Magic Cylinder" and "Mirror Force" can only be activated in the first Chain during this Step.
If the monsters that the controller of the attack target controls changes during the Battle Step, a replay is triggered. After a replay, a new Chain can be formed, but this Chain is not in response to an attack declaration. This can also occur if a new monster is Special Summoned to your opponents side of the field.
After both players decide not to start a Chain, gameplay proceeds to the Damage Step, as long as the attack can continue.
- Damage Step:
The Damage Step is composed of a series of events. The start of the Damage Step, flipping the face-down attacked monster face-up, damage calculation, inflicting Battle Damage, activating the Flip Effect of the flipped monster, and sending a monster destroyed by battle to the Graveyard are separate events that all happen during the Damage Step.
The Damage Step has specific rules that govern what can or cannot be activated. Some cards can't be activated at all, while others can only be activated during very specific events that occur within the Damage Step
Cards that can be activated at Damage Step:
Counter Trap Cards (e.g. Seven Tools of the Bandit)
Spell Speed 2 Effects that alter the ATK/DEF of monsters (e.g. "Rush Recklessly")
Effects that have activation timings, unless they specify otherwise (e.g. "Wind-Up Factory")
Quick Effect (Multi-Trigger) Monster Effects that negate the activation of a card/effect. (Only if they negate the effects' activation; with the exception of Photon Strike Bounzer, which may also chain)
"Attack and Receive", "Chthonian Blast", "Desrook Archfiend", "Michizure", "Null and Void", and "Numinous Healer"- Substep 1: Start of the Damage Step:
First, apply the Continuous Effects of monsters at this time
Next, activate the Trigger Effects of monsters that activate at this time
Effects that increase, decrease, halve, or double the ATK and/or DEF of a monster can be activated at this time
- Substep 2: Flipping the face-down monster face-up:
If the monster being attacked is face-down, it is flipped face-up at this time. If the monster has a Flip Effect or a Trigger Effect that activates when it is flipped face-up, the effect will not activate at this time unless otherwise stated by the card text.
If a monster is flipped and it has a Continuous Effect, then you apply the Continuous Effect
Effects that increase, decrease, halve, or double the ATK and/or DEF of a monster can be activated at this time.
- Substep 3: Before damage calculation:
Cards with effects that state “without applying damage calculation”, occur at this time.
Cards that activate when they are flipped face up activate at this time.
Damage inflicting effects are activated at this time
You are allowed to have multiple Chains for the use of activating these types of effects.
- Substep 4: During damage calculation:
We only get one Chain with which to activate effects that are activated "during damage calculation". Only effects that are activated "during damage calculation" and effects that negate them, such as Counter Trap Cards can be activated at this time.
Effects that increase, decrease, halve, double, etc. the ATK and/or DEF of a monster cannot be activated at this time, unless they are specifically allowed to be activated "during damage calculation".
Any Continuous Effects specific to damage calculation are applied before the "during damage calculation" Chain begins, but some can be applied or disappear during the Chain's resolution if the conditions of the battle change (ATK/DEF change, Life Point change, etc.) After the "during damage calculation" Chain has finished resolving and all appropriate Continuous Effects have been applied, the results of the attack are determined and any resulting Battle Damage is inflicted.
If a monster is destroyed by a card effect during damage calculation, any remaining effects on the Chain finish resolving. After the Chain finishes resolving, damage calculation stops. No battle damage is inflicted and neither monster is destroyed by the battle. The monster that is destroyed by a card effect is not considered to have been destroyed by battle, because damage calculation stopped and this determination wasn't made. The remainder of the Damage Step continues as normal.
- Substep 5: Battle damage - after damage calculation:
If the flipped monster had a "self-destruct" effect and it has survived the battle, it is destroyed by its effect at this time if its proper field conditions are not met.
If a monster destroyed by the battle has a Continuous Effect that is applied while the monster is face-up on the field, the Continuous Effect is no longer applied. Continuous Effects that change where a monster goes when it is removed from the field at the end of the Damage Step are unaffected
Activate effects that activate when Battle Damage is inflicted to a player’s Life Points, at this time.
- Substep 6: Resolve effects:
This section deals with the the Flip Effect of the Flip Effect Monster that was flipped face-up by the attack.
The Flip Effect of the monster flipped face-up by the attack activate at this time. If the flipped monster had a Trigger Effect that activates when the monster is flipped face-up, it will be activated at this time.
If the Flip Effect of the flipped monster targets, you cannot select a target that has been destroyed during damage calculation.
- Substep 7: End of the Damage Step - monsters destroyed by battle are sent to the Graveyard:
Monsters that have been destroyed by battle are now sent to the Graveyard
If the monster destroyed by battle has an effect that activates when it is destroyed by battle and sent to the Graveyard, its effect starts a Chain.
A monster that activates its effect when it destroys a monster by battle and sends it to the Graveyard are also activated at this time.
Monsters whose effects activate when "destroyed by battle" will activate at this time.
Monsters with effects that activate when they destroy a monster by battle, without the additional requirement of “sending it to the Graveyard”, will also activate at this time.
If you have another monster on the field, once you have completed the Damage Step you can go back to Battle Step and declare a new attack. Note even if you have several monsters and your opponent has an open field, each monster must complete the entire process before another monster can declare another attack. Each attack is individual. Only one at a time must be declared and resolved.
- End Step:
Once all battles have been resolved by repeating the Battle Step and Damage Step, the Turn Player may declare an end to the Battle Phase, resulting in the End Step.
Either player may activate Trap Cards, monsters' effects and/or Quick-Play Spell Cards at this time.
Multiple Chains are allowed during this Step.
