Each additional stock, up to 5, provide huge diversification...

Each additional stock, up to 5, provide huge diversification benefits, for only $40. I don't know...I hope you're just starting out with a couple of thousand dollars. I started out in the stock market in 2008/2009. In 2009 I bet on the steel sector recovering and put all of my $5000 on to BSL in anticipation. I could have diversified into OneSteel and BHP but I thought it wasn't worth it. Painful lesson that. The only consolation was, after my investment almost doubled, I took some profit... before losing my original capital. Painful lesson, that. Nowadays I take care not to put more than 15% of my portfolio into a stock, or if I do I will keep trying to fix my allocation.