On the 20th we exited the second half of the Mineral Resources (MIN) position at $50.25 after it hit the stop loss.
The MIN share price fell sharply yesterday due to the continued volatility in the iron ore price. The iron ore price dropped 10% in one day because of fears of additional COVID-19 lockdowns in China.
With market conditions continuing to look decidedly negative across the board, we are more than happy to exit the last shares in Mineral Resources (MIN). The profit generated on the closed position is an excellent outcome in the current environment, but exiting is more about protecting capital.
We must have the capital available to enter new positions when the market shows signs that the recent move to the downside is over.
Despite the bounce in US markets overnight market conditions continue to look decidedly negative across the board. The market has lost its confidence and it will take more than a one-day recovery for investors’ confidence to return.
Closed position result
Number of shares: 300
Entry Price: $47.40
Average Exit Price: $54.38 (150 shares sold at $58.50, 150 shares sold at $50.25)
Result: Profit $2,092.50
Please ensure that you automatically exit at the stop-loss levels that was advised throughout the trade as a timely exit is vital to capital protection.