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How to buy Lynas Rare Earths Limited (ASX: LYC) shares
16 Aug 2022
Interested in buying Lynas Rare Earths Limited (ASX: LYC) shares, but not sure where to start? We take you step-by-step through the process of owning LYC shares.
What is Lynas Rare Earths Limited?
Lynas Rare Earths is an ethical and environmentally responsible producer of rare earth materials. Outside of China, they are one of the world’s significant producers of rare earth materials. The premier rare earth deposit is located in Western Australia. They also operate the largest single rare earths processing plant in Malaysia, exporting to manufacturers in Asia, Europe and America.
How to buy Lynas Rare Earths Limited (LYC) shares
1. Compare share trading platforms
Before you can buy LYC shares you will need an online share trading platform. There are many platforms to choose from so it is best to shop around and find one that suits your needs. Consider your level of experience investing, the fees involved and the features the platforms offer.
2. Open and fund your brokerage account
Once you have decided on a platform you can open your account. Typically, you will need at least two forms of identification and a bank account to link your brokerage account with. When your account is set up you will need to transfer some money into your brokerage account so you can buy LYC shares.
Compare Online Share Trading Accounts with Canstar
If you’re comparing online share trading companies, the comparison table below displays some of the companies available on Canstar’s database with links to providers’ websites. The information displayed is based on an average of six trades per month. Please note the table is sorted by Star Rating (highest to lowest), followed by provider name (alphabetical). Consider the Target Market Determination (TMD) before making a purchase decision. Contact the product issuer directly for a copy of the TMD. Use Canstar’s Online Share Trading comparison selector to view a wider range of online share trading companies. Canstar may earn a fee for referrals.
| Provider | Star rating^^ | Fee for $15K trade^ | Ongoing fees# | |
|---|---|---|---|---|
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$0 | N/A |
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$8.25 | N/A |
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$15.00 | N/A |
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$15.00 | N/A |
View all Canstar rated Online Share Trading products. View Disclosures.
^^ Star ratings are awarded by research analysts based on an evaluation of price and features
^ Online brokerage fee for a $15,000 trade based on the number of transactions specified in the search inputs
# Ongoing fee for the account. There may be waivers or discounts subject to account use
3. Evaluate LYC’s financial health
It is always a good idea to seriously consider a company before investing in it. There are a number of ways to analyse a stock, but a good place to start is to have a clear idea of what the company does, how they make money, how they intend to grow the company and what its current financial position is.
4. Decide when to buy LYC stocks
Timing the market is notoriously difficult, but one thing to keep in mind is the mantra: ‘buy low, sell high’. You may not be able to tell which direction a stock may go, but by looking at some historical data you may get an idea of whether a stock is currently trading low or high.
5. Determine how much you want to invest
Nothing is ever guaranteed, especially on the stock market. Even if you thoroughly analyse a stock and attempt to buy when prices are low, you still might make a loss. So, another safety measure you can take is to only invest what you can comfortably afford to lose.
6. Buy your LYC shares
If you are pushing ahead and ready to purchase LYC shares it should be fairly straightforward. Log into your investment platform, select the shares that you wish to buy and, either how many shares you’d like or the amount you wish to spend. Keep in mind you will need enough funds in your brokerage account to buy the shares and cover the brokerage fees.
If you have purchased your shares when the market is open, the ASX is open Monday-Friday 10am-4pm (Sydney time), the shares should be able to automatically purchase the shares at market price. If you attempt to buy shares outside these times you will likely have to put in a limit order. This is where you can dictate the price you wish to buy at and what timeframe you wish for the shares to reach this point.
For example, you might find Friday night is the only time you’ve had free time to sit down and open your investment platform, and you have seen LYC is trading at $9.85. You can put a limit order of $9.50 that expires in 30 days. If at any point LYC falls to $9.50 within that period the shares will be bought on your behalf.
7. Monitor your investment over time
Depending on how long you intend to invest for you may want to monitor your investment regularly. However, if you have a long-term outlook and don’t intend to sell your shares for a number of years, you may want to block out all the noise and ignore the market movements until closer to when you would be looking to sell. Often, taking the emotions out of investing can help you avoid making costly mistakes.
How to sell MQG shares
When it comes to selling shares, it is much the same as buying. Select the amount you wish to sell and if you sell during market time you will receive the market price. Outside of this time you can set a limit order and decide the price you wish to sell at.
Image by: Vova Shevchuk (Shutterstock)
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This article was reviewed by our Content Producer Marissa Hayden before it was updated, as part of our fact-checking process.
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