The foundation chain consists of a front and back loop, and a back ridge. I most commonly work by inserting the hook into the back ridge loop only.
Ch = Chain
Sc = Single Crochet
Yo = Yarn over (from back to front, unless otherwise stated)
The 'Foundation Chain'
Every project needs a beginning. The foundation chain is the beginning to your crochet projects. The foundation chain is NOT your first row. It is your foundation to work your first row/round in.
It is very important not to twist your foundation chain, while making it, and while placing stitches into your first row. It is also very important to make the number of 'chains' the pattern asks for. Your slipknot/first loop on hook does not counts as your first chain.
Start by making a slip knot, or knotted loop on hook. Decide how you are most comfortable holding your hook. Some people hold theirs like a pencil. I hold mine like a knife.
Yo (Yarn over hook). Basically you just wrap the yarn you are working with over the hook.
Draw yarn through loop on hook. Repeat as many times as pattern requires. Example requires 29 chains.
Try not to tense up too much. Relax as you make more chains. Chaining too tightly can make your first row very hard to work with. As you learn to crochet, and become more familiar with it, you will find you get more average tension. You will crochet much faster with experience, so don't give up too early :)
Your finished chain should appear similar to the one shown in this photo. My chain has 10 loops. The last loop on hook does not count as a loop.