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You walk through a town, looking for nothing in particular. Over in the distance you see a large crowd surrounding an area on the street. Since you have nothing better to do you walk over to the crowd and talk to the first person there.
Kirin: Excuse me, but whats going on here?
Man: Not sure... I've been trying to get forward for a while, but I keep getting pushed back. Judging by the amount of warriors here some guy probably made up a tournament.

Go on further into the crowd?

Go further.

You push on further and eventually make it to the front of the crowd, you see a man at the front next to a guard.
Man: I'll be holding a tournament here in the town over the next few days. The prize will be a large amount of money and some rare items, however only the winner of the tournament will recieve it. All others who make it to the second round will get money; but it will be significantly less. Tommorrow there will be preliminary fights in the colliseum to decide who will make it to the second round of my tournament. Prepare and go there tommorrow if you wish to join.
After his speech his guard clears a way for him through the crowd and he leaves. After some chatter between the crowd of people everyone eventually walks away.

I guess I should just ask someone for more details about the tournament

You ask around town about it. You gather this information:
-The one hosting it is one of the wealthiest men in the town.
-Most of warriors entering it aren't very strong, the host wants to give everyone a chance, so only people up to level 5 are allowed in.

If my stuff's already been equipped, then I'm all set.