Watchman Nee emphasizes the necessity of understanding our identity in Christ to fully embrace the new life we have in Him. He explains that knowing God as the God of Isaac assures us of our inheritance and the completed work of Christ, while knowing Him as the God of Jacob teaches us about the discipline of the Spirit and our own weaknesses. This dual understanding leads to a balanced Christian life, where we recognize both our victory in Christ and our need for His strength in our weaknesses. Ultimately, it is through this revelation that we can live confidently and victoriously, acknowledging that Christ is our life and source of strength.