How to buy Pilbara Minerals (ASX: PLS) shares

Interested in buying Pilbara Minerals (ASX: PLS) shares, but not sure where to start? We take you step-by-step through the process of owning PLS shares.

What is Pilbara Minerals?

Pilbara Minerals is an Australian lithium and tantalite mining company, which owns 100% of the world’s largest, independent hard-rock lithium operation. The company is setting itself up to be a major player in the lithium supply chain. Currently Pilbara Minerals’ biggest project is Pilgangoora Project which is located in the mineral-rich Pilbara region in Western Australia. Through their lithium mining operations the company is taking advantage of the increasing demand for clean energy technologies such as electric vehicles and energy storage.

How to buy Pilbara (PLS) shares

1. Compare share trading platforms

Before you can buy PLS 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 PLS shares.

3. Evaluate PLS’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 their current financial position is.

4. Decide when to buy PLS 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 PLS shares

If you are pushing ahead and ready to purchase PLS 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 10m-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 PLS is trading at $3.50. You can put a limit order of $3 that expires in 30 days. If at any point PLS falls to $3 within that period the shares will be bought on your behalf.

7. Monitor your investment overtime

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 PLS 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.

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