Although imitation traps us in boxes of conformity, a wealth of creative inspiration can arise from watching an heroic model. Find and study examples of greatness—not to mindlessly follow but to spark more creative energy. While awareness of others' success inflames jealousy, competition, and envy in the foolish; it kindles dedication, confidence, and noble deeds in the wise.

When people don’t appreciate living,
And so aren’t afraid of dying,
What good is threatening them with the death penalty?
When they appreciate and love life,
They fear heaven’s executioner,
They naturally love and take care of their lives.

But even if having a human executioner
Would make people change for the better,
Who could justly take on this role?
Only the karmic Net of Heaven can do that.
Anyone usurping this role of heaven,
Only causes great harm to themselves.

Don't let a higher position or new level of approval change your attitude and approach to others. Often people win more authority with obsequious deceit; and when they assume the new role go to the opposite extreme with surly, irritating, unapproachable arrogance. They get revenge for having to please everyone by making everyone irritated and angry. The more power we receive, the more approachable we should become. Being unapproachable communicates a deep lack of self-knowledge, and self-confidence; a judgment that we don't deserve the position.

Those with outer courage
Dare to act and take life.
Those with inner courage
Dare to not act and give life.
Both of these are sometimes good,
sometimes harmful
When one best, when the other?
Even the most wise don’t know for sure.

The Way of Heaven
Doesn’t compete but easily wins,
Doesn’t speak but answers completely,
Doesn’t request but attracts all it needs,
Doesn’t stress but impeccably acts.

Heaven’s Net catches everything,
The mesh is wide yet nothing slips through.

Complicated, confusing, and dangerous difficulties easily becomes worse after an ill-considered remark or gesture. The wise instead extricate themselves with skillful evasions, elegant jokes, witty remarks, warm smiles, changing the subject, or pretending to not understand. Potentially serious conflicts submerge when intriguing diversions arise. These methods can also skillfully ease the pain of refusals. Sometimes the most clear understanding leads to acting like we don't understand.

When we don’t fear the fearful,
Confusion and great suffering arise.
Therefore fear a constricted life,
Fear wasting your time with a meaningless career.
If we don’t accept superficial values,
We won’t act in superficial ways.

And so the wise know themselves
But don’t show themselves,
Take care of and appreciate
But don’t puff up and exaggerate.
They let go of that
And choose this.

Like the potentially destructive power of water increasing when dammed, doing a careless, bad job on a project creates less harm than lack of determination—not carefully considering, looking ahead, and strategizing that same plan. Most don't see clearly and get stuck. Mired in indecision, they become mindless followers. Some see the problems and ways forward but lack the resolution and determination to accomplish anything. Wise and true leaders not only see the problems and solutions clearly, they also skillfully and without hesitation apply the solution to the problem accomplishing successful outcomes and quickly moving on to the next challenge.

To know without believing we know is best.
Believing we know creates mental illness.
When we recognize belief as sickness,
Healing begins.
Because the wise are sick of this illness,
They aren’t sick.

Although inevitable, change need not undermine reliability. When not capricious but instead based on sound reasoning, change doesn't confuse people making them doubt our reliability. When personal change arises because of consistently responding to externally changing situations and events, reputations for dependability remain solid. However, when conduct frequently vacillates out of boredom for no reason other than novelty, we destroy our credibility, our reputation, and our ability to accomplish and succeed. Heart and vision can remain consistent and dependable while external action and strategy quickly change with the changing circumstances.

These teachings are easy to understand,
Easy to practice;
Yet very few understand
Or put them into practice.

These words have an ancient source,
These actions an ancient beginning.
But when this source is unknown,
There can be no real understanding.

Therefore the wise appear simple and ordinary on the outside
While holding a precious treasure concealed within.

Saying "no" risks good will, friendships, and all kinds of relationships. Learning how to do this in a skillful way therefore determines—to a large extent—our success in life. "Yes" and "no" are short words quickly spoken, but, because of their deep and profound consequences, require serious and thoughtful consideration. The arrogant and power-intoxicated tend to maintain "no" as a first response and, as a consequence, lose good will even when they later approve. Instead of creating resentment, a wisdom-inspired "no" can invoke more appreciation than a cursory "yes". It substitutes politeness, charm, and fine words for acquiescent action. Not capricious or abrupt but gilded with positives, this kind of "no" usually evolves slowly and incrementally over time. Never "final", it always leaves room for hope and change.

The best military experts advise:
Retreat when not strong enough to advance,
Advance when your opponent not strong enough to attack.
March without moving,
Roll up your sleeves without flexing your muscles,
Be strong and powerful without weapons,

Give an attacker no opponent -
Nothing is worse than attacking what yields,
To attack and find no enemy.
Aggression destroys our greatest treasure.
When opponents are evenly matched,
The most compassionate prevails.

Don't let your impulses and strong feelings enslave you to whims and poor judgment. Under the influence of contradictory desires, public opinion, and seemingly certain external opinion; most people unknowingly live their lives controlled by subtle cultural and political forces they not only don't understand but also don't even notice. This creates cognitive dissonance and a damned-if-you do/damned-if-you don't dichotomy between our beliefs and our true selves. Instead, focus on knowing yourself. Self-reflection can become the best school of wisdom.

During golden ages
The best soldiers were never angry,
The best generals were never aggressive.
They overcame enemies without fighting.

The best victors didn’t compete,
The best employers served their employees.
This is the goodness of no struggle, no striving, no gaining ideas;
The best use of ability;
The joining of heaven and earth.

From moment to moment, the most appropriate response changes but most only see what is past or what they hope will occur in the future, not noticing opportunities in the present. Most possibilities slide past us into oblivion because we ignore them or because we are afraid of the risks. Most never find success simply because they don't make the attempt. Often a close friend has a more clear awareness of this kind of achievability than the friend themselves. When giving this kind of advice however, subtlety and reticence become key to communication that inspires without controlling manipulation. Don't say more than necessary and add further bits of confidence-building only if necessary.

People say that the Tao is great
But not practical, even useless.
Because it’s great it’s improbable, not practical or useful.
What’s probable is conventional and petty.
If it were useful,
It would never have become great.
Because it’s great, it seems like folly.
When truths become solid,
They transform into clichés.

Only 3 qualities are worth treasuring and following closely:
Compassion, moderation, and humility.
From compassion comes bravery,
From moderation comes generosity,
From humility comes authentic leadership.

But bravery without compassion,
Generosity without self-restraint,
Leadership without humility
All lead to disaster.

Compassion wins every battle
And outlasts every attack.
What goodness creates,
Compassion protects.

In this second, not-typical, probably inserted chapter; power and prestige-seeking is again glorified:
Choose a livelihood that will gain you the most praise and fame. Some professions immediately attract esteem while others—although sometimes more important—do not. Prefer the paths that bring the most prestige, that put you closer to the center of celebrity. An honored reputation brings the breath of life.

By always seeking the most lowly position,
Oceans can welcome and receive all rivers and streams.
In this way the wise, by placing themselves lower than others
Gain the most respect and influence.
They teach and guide by listening.
They lead by following behind.

For these reasons,
When the wise are in charge,
The people don’t feel oppressed.
When the wise are in front,
The people don’t feel blocked.

The world never tires of praising
And appreciating this kind of leader.
Because they don’t struggle or compete,
They have no competition.

In this nod to Machiavelli, Gracian (born 132 later)—or possibly a later editor—contradicts most of his other suggestions and paraphrases this famous sentiment from The Prince with a slightly more Christian softness:
A successful conclusion washes away the negative memories and bad feelings that arise from using unethical methods. If you win, you don't have to explain or justify yourself so winning holds the supreme importance. The goal is the journey. History only records in detail success and failure, not the means. Therefore, sometimes becoming successful requires breaking the rules.

The wise don’t teach people to believe in words
But only to search for the true meaning.
When people are convinced by concepts,
Foolishness abounds.
When leaders are convinced by concepts,
Corruption, confusion, and conflict reign.
When instead they remain unconvinced and open,
Blessings and goodness spread.

Realizing the difference between understanding the words
And understanding the sense
Is a key to the Hidden Power of Goodness.
This power goes deep and reaches far.
It leads all things back to their own true nature.