A trader's efforts will not be handsomely rewarded unless he/she is able to diversify trading across time frames, across systems, and across markets. Like it or not, this is a fact of market life. This chapter discusses diversification and its implementation on three different levels. Those three levels of diversification are: diversification across markets, diversification across time frames, and diversification across trading methods. Some aspects of diversification are obvious while others are not so simple. It is very clear that the most volatile markets are also the best markets for day trading and short-term trading. Volatility creates frequent changes and large price swings. Short-term traders and day traders thrive on such opportunities.