December is approaching and many people may be thinking about spending money instead of investing it. Even some people who would like to start investing in stocks may decide that it may be a modern year’s resolution rather than something to do in December.

But when it comes to investing, it’s basic to delay investing – perhaps forever. In fact, starting a business on the stock exchange does not necessarily require enormous financial outlays.

So even with a few hundred pounds, someone with no experience in the stock market could start investing before the end of 2025.

Preparation for the role of an investor

The first step is preparation.

Even though someone may lack experience in the stock market, it doesn’t mean that they should start buying stocks without knowing anything about the market.

In fact, I think it’s essential to do some research and familiarize yourself with key concepts like stock valuation before you put a dime into the market.

It’s also worth developing a basic strategy. Every investor has their own goals and risk tolerance. Thinking about this can support someone decide what to do when they start buying stocks.

The next preparatory step is to find a way to buy shares. With several hundred pounds to invest, minimal fees and commissions can potentially eat up a lot of your investment.

Therefore, a modern investor should take some time and compare available stock trading accounts, stocks and shares ISAs and trading applications.

Applying the right principles from day one

Even with just a few hundred pounds to invest, I think it’s worth starting to buy shares to keep going.

For example, a uncomplicated but essential risk management strategy is diversification. It is possible to diversify even with just a few hundred pounds.

Instead of buying a stock in the hope that its price will go up (e.g. because the price has dropped dramatically recently), I think it’s worth taking a long-term approach to investing.

This involves asking whether the stock represents good value given the company’s future prospects.

One action to consider

For example, one stock I think investors should consider is JD Sports (LSE:JD).

Stocks, as they tend to do, have been underperforming lately. The share price has fallen by a quarter over the past year.

But the price drop itself isn’t what I like about this stock. I like the fact that its current penny price seems affordable to me for a company like JD Sports.

Demand for sportswear and footwear is high and likely to remain so. Through organic growth and acquisitions, the company has built a sturdy position around the world.

Thousands of stores and digital operations have helped it build a sturdy brand and a enormous customer base. The business model is proven and JD Sports is solidly profitable.

A tender economy could mean people think twice about spending costly trainers, which could hurt revenues and profits. However, as a long-term investor, I still see many things worth considering when it comes to investing.