Hi Paul, thanks for reaching out.
To apply physics on a rocket shooting into an object, you must make sure that the rocket has set static and precise collision turned on:
As for the objects that the rocket is hitting, make sure that they are turned off:
You can see an example in this demo space: https://cospac.es/edu/HI6c
With a little coding to activate the rocket too:
Let me know if you need any further help.