$5000 isn't enough to apply a 20% diversity rule. Thing of the brokerage costs at either end buy/sell and the tax. You would need a huge percentage move to make a cent.
If you want diversity then buy a fund. Maybe an index tracking stock like STW and stick it all in that. But we are talking LT stratergy not ST trading.
If you want to trade frequently then 1 or 2 stocks at most imo. So research well. Be prepared to lose. You can gain leverage through options but higher risk. Depends on your ability. Or margin loan but depends on your finances and risk apetite.
