Sacrament -"Something sacred"

Augustine defined sacraments as "outward and visible signs of an inward and spiritual grace."

"External elements that point to a reality beyond themselves. We don't imagine that just because we see a sign on the hiway pointing to Chicago that we have actually arrived at Chicago. Rather it is a sign pointing to a reality beyond itself. The sign or the symbol isn't to be confused with the thing it signifies or symbolizes. There are blessings that attend the sacraments. But the blessings are not automatically conveyed by getting close to them or involved in them. Just as the blessings conveyed in the scriptures are not automatically conveyed:

For we also have had the gospel preached to us, just as they did; but the message they heard was of no value to them, because those who heard did not combine it with faith. (Heb 4:2)

Reformation defined two (from scripture, instituted by the Lord Jesus): the Lord's Supper and baptism. Council of Trent (Catholics) rebutted and define 7 (and that unwritten traditions of the church and the scriptures are to be received with equal reverance and submitted to on the same level [need ref.]).

- Instruction in which we obey Christ (meal was instituted by Christ) 1 Cor 11:23.
- Commemoration in which we remember Christ - as Passover meal was a remembrance of the angel of death passing over, a sign of dependence.
- Proclamation in which we preach Christ as in Exo 12:26.
- Participation in which we feed on Christ (1 Cor 11:26, John 4:14, John 6:51)
- Anticipation 1 Cor 11:26.
 

Lord's supper - bread and wine.

Baptism - water. Again, reality is displayed, not dispensed.

The reformers determined it was vitally important that whenever you shared any sacrament the word of God was proclaimed "Only in the explanatory proclamation of the Word, that the confirmatory nature of the sacraments might be understood."

Jesus was baptized for identification and consecration.

Baptism is a confession of faith in Christ. Acts 2:38