Diversification is an investment term, mainly used to reduce risks. I am using it all the time in my portfolios. However, after I studied Larry Williams trade log and Fairy's diary, I found day traders don't use it at all. This makes sense: 1 they need to focus on one subject or at most two 2 with stop loss, who needs diversification to reduce risks? the reason i ask this is that i found a way to increase drawdowns per position by using diversification, so i can accept 10% lose per day, although one position lost 30% and the other gained 20%. As I shorted Cu and Longed Al, or longed corn and shorted soymeal. So I can use 100% of all of my margins without fearing a SUDDEN BIG market move to the direction againt me. And I don't use stops in those trades, because in fact I welcome big moves in either direction.