But I would have to disagree with point 6 a bit. I like to spread my money around more and limit my exposure to any one company at a time. I think that can be dangerous
With CFDs and cheap brokerage it isnt a problem to do that and if there is an adverse event on a company in your open positions, having just five open positions can result in a significant drag on your current portfolio
a 20% drop on one position in five is significant but on 10 to 15 its not much at all