WordPress Matt recently provided an insightful quote on the importance of pruning:
Pruning is an important and necessary step in growing roses. Pruning keeps the plant healthy. It promotes new growth, removes dead, broken or diseased canes and trains roses to a desired shape. Pruning encourages flowering, either more blooms or larger blooms, and is essential to keep modern rose varieties blooming repeatedly all summer long.
For a long and more profitable trading season, I believe it is imperative to attend one’s trading strategies much in the same way that a gardener attends his flowers. Approaches and markets that are proving unprofitable must be cut back so the energy (equity) can be directed to producing more flowers, whether they come from a return of focus to one’s core approaches or from new approaches entirely. For the trader who adopts the pioneering approach and is constantly experimenting around the fringes, pruning is a continuous process, an essential requirement for balanced, sustainable growth.