how to start a reef tank

Whats up guys how are things going. Well i am back with another question. For about 2 days now i am starting to see red sand. What the heck is this is this normal algae growth. i checked my ph it was kind of high. nitrate is about 5 , nitrite was 0 , ammonia was .25 i am going to do a water change should i mix up the sand.
Also the bulb anemone is closed up hidden in the rock he comes out at night but then i keep the lights on to simulate daytime and when i come home from work he is closed up again is this normal.
 
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