Magic Chain Stitch is a wonderful stitch. It uses more than one color to the chain stitch. It is a kind of a complicated one. As 2/ 3 colored threads are used, the threads can get entangled while embroidering this Magic Chain Stitch. So have to be careful to not to use entwined threads. Take time and understand the position of the threads before pulling them.
1. Use two / three colored threads. The number of threads should be same for all the colors.
2. Do the first chain stitch with one of the colors.
3. Continue doing the stitch using all the colors.
The picture guide: