When moving Travelling Merchant from base to battlefield without cards in hand to discard, what is the correct sequence?

Ruling: You move the Travelling Merchant to the battlefield, skip the discard (since you have no cards in hand), draw 1 card, then initiate the showdown.

Sequence:

• Move Merchant to battlefield
• Skip discard (no cards in hand)
• Draw 1 card
• Initiate showdown