Thought necessarily precedes and predetermines action; action precedes and
predetermines condition.
In paragraph 6 Charles Haanel goes on saying that:
The secret of power is a perfect understanding of the principles, forces, methods and combinations of Mind, and a perfect understanding of our relationship to the Universal Mind.
This means that the better we understand our relationship to the Universal Mind, the better our thought will be. If our thought be clear, concise and full of life and harmony, so will our action and, correspondingly, the condition that emerges.
Thus far we have "located" this power outside of ourselves, but now we learn that nothing is further from the truth. And this realization brings us to the possession of true power, the power that comes from within and the power that allows us to create whatever we deem fit for creation. But as we have understood that good and evil are just terms we have given particular outcomes, it no longer makes any sense to think up negative things as we know what the corresponding condition or result will look like. And no longer will we seek or hope for an external power, but find it right within ourselves.
Remember that the Master Key System is largely about activating your Solar Plexus, the 3rd chakra) and once you have mastered this, you will then proceed to the 4th, your Heart Chakra, where you will display yet another set of qualities for your betterment and that of Mankind.
Charles Haanel once again urges us to seek Silence and Solitude. Great thoughts are born there, and this is what you are after. Insight, inspiration and clarity are obtained in Silence, so make sure you appropriate this in order to further your ideas and ideals.