Pre Trade Prep

MP was gapping up 11% to 52 week highs and right around its all-time high. MP was on my original gapping up list, but I was not actually paying attention to it until it repeatedly popped up on the “52 Week High/Low with Volume” scanner. I noticed around 10am (the screenshot only goes back to 10:20am) that MP was making continuous highs due to the alert count climbing into the 400s. This essentially alerts me when a stock’s price is making a new 52 week high every time it prints. Therefore, the fact that I was seeing hundreds of alerts indicated that we were not only breaking highs but doing so with momentum. Fundamentally, the move was a result of Apple Inc. making a new commitment of $500 million to buy “American-made rare-earth magnets” from the Las Vegas-based materials company. The magnets will come from MP Materials’ flagship facility in Fort Worth, Texas, which Apple is helping to build out, the iPhone maker said.

Trade-Ideas Scanners

Post Trade Review

MP made a strong move higher and began encountering resistance around the $58.26 level. What stood out to me was the price action tightening up near the 9 EMA (red line) and the key level before the breakout. I entered the trade as the breakout began and took partial profits on the way up.

My entry on this trade was excellent—no complaints there. However, I exited too early and left a lot on the table. This was likely influenced by earlier losses in the day, but regardless, I need to give trades like this more room to run. Ideally, my first partial should have been just after 10:20 AM when the stock became overextended on high volume. From there, I could have trailed the remainder using a break of the 9 EMA as my exit signal.

Another issue I encountered was with my current hotkey setup. Right now, I have hotkeys to enter a long position, sell half, and sell the full position. Selling half as the first partial is too aggressive. Going forward, I plan to adjust this to take off only 1/8 of the position on the first partial to manage the trade more effectively and let more of the position run.

MP 1 Minute Chart

MP 5 Minute Chart