Yes, doing this chain is just like if you were making a chain to start a piece; instead of a slip knot you just have the one loop on the hook. So reach out and grab the yarn, pull it through and you've done one chain. Do it 6 more times and there's your ch 7. Then hook through the next 3 sts, yo and pull it through all 3 sts again. It's as if you CO sts, you don't use the existing ones, you make new one.
sue- knitting heretic