From what I've read... you'll need to be running iOS 6.0 or higher for this trick to work. With a little bit of timing and practice your end result is an infinite scrollable folder that you can put as many apps in as you wish. Here's the trick...
Step 1: Place the Newsstand folder anywhere on the second page of the Home screen.
Step 2: Place the apps that you would like to move into the Newsstand folder on the third page of the Home screen.
Step 3: Swipe to the third page of the Home screen containing the apps that you would like to move.
Step 4: Press the Home button once, and then immediately tap and hold on the app that you wish to move.
Step 5: Continue holding on the screen until the Home screen moves to the first page due to your press of the Home button.
Step 6: Release your hold on the screen and immediately swipe back to the second page containing the Newsstand folder
Step 7: If the trick worked correctly, then you should see wiggle mode enabled.
Step 8: Tap on the Newsstand folder to open it, and then press the Home button once to close it.
Step 9: You should see the app that you tapped and held on in Step 4 move into the Newsstand folder.
Remember... timing is key in making this glitch work. If you have any issues please see the source below for a How-to video, additional information, and other variances.
Source: How to use Newsstand as an app folder without jailbreaking