When you practice pragmatism, you accept conditions as they are and make practical decisions. Your head is not in the clouds.
If you urge your daydreaming friend to accept that life is not a fairy tale and the only way to succeed is through hard work, that's pragmatism. This is an approach based on how things are, not on how you wish they were. This also refers to a philosophical doctrine built on the idea that something can only be true if it works. If you're known for your pragmatism, then you're realistic, logical, and know how to get things done.