Watchman Nee explores the intricate relationship between the soul and the flesh, emphasizing that the flesh represents our sinful nature while the soul embodies our life. He explains that before salvation, the soul was driven by the flesh, leading to a life of sin. Upon receiving Christ, believers gain a new life and nature, resulting in an internal struggle between the old sinful nature and the new divine nature. This conflict can lead to instability in a believer's life, but understanding the crucifixion of the flesh allows for victory over sin. Ultimately, Nee warns that even as believers may feel spiritually advanced, they can still be trapped in a soulish state, needing continual growth in their faith.