Yes DB, you have got it correctly. Thats the way one is supposed to allocate the capital to each scrip. Rest depends upon your risk appetite. From my personal experience I can vouch for this method, though initially it will seem like just 3/4/5? Why should I keep rest of the money idle? But then, you know market has its own mood swings and during those volatile period, this idle capital will help in adding/averaging while price is on its way up or down. As you go forward, you will be able to decide on your own about your risk propensity and number of shares to be purchased. Till then, take it slowly and things will work out just fine.
All the best...