Also on these boards
Magic circle Tutorial - this is exactly how I make mine. I've seen other tutorials where they start with 2 loops but I always just do the one. I also pull that first ch loop really tight. The only difference is that I do count that ch as my first ch, mainly because I don't like to ch 3 for a dc, just a loose ch 2 works best for me.
Finally a pictorial for magic circle that makes sense. The magic circle is a great way to begin most projects that are worked in a round (ie amigurumi, hats, etc.). The purpose of this stitch is to give you a nice tight beginning round, regardless of how many stitches are in the round.