This new strategy that helps you focus on what you’re doing in the stock market is destined to give you tunnel vision.
“Tunnel trading” a visual guide that can help you trade the futures market and can be used on any futures symbol. But we specifically like to use it on the E-minis.
The strategy’s end goal is to exit the position with profit — for now let’s not focus on the amount of profit.
Your trading chart is going to have four lines on it: One blue (your automatic exit for profit), two green (where you strategically enter into the market) and one red (where to close out on your positions for a loss).
These lines are going to become your best friends and identifiers on when you need to enter and leave your trades.
Before we run head-on into that, we need to brush up on some basic information so that we don’t trip along the way.