My read of the rules is that it is the latter.
Some people's starting points will probably be in an unplayable state so it'd be weird to ask them to post those builds too.
If you wait to see a ripple, it means the fish is near that spot. If you click on the ripple, you should see a fly be cast, and a fishing line appear when it lands. The rod will flex when you get a bite, and clicking and dragging to the right will reel the fish towards the rod.
Clicking the water is a shortcut to equipping the rod, and clicking on the sky is a shortcut to unequipping the rod away. I think this needs to be added to the tutorial somewhere, I can see how it's confusing right now.