How to add a fade - Tom C

First things first, you need to select the footage you want the fade to be on.

Then you go  into the 'video transitions' part of the menu (it's one of the top bars, just follow it down), select 'dissolve' then 'dip to colour dissolve'

This adds the highlighted grey bar onto the footage's end (put on a different part so as not to lose data)

The footage then needs to be rendered as you have introduced the effect.

As the video plays, you can see the fade come into effect