God equips his people so they are able to make sound decisions. “It is better to teach a person how to fish than to give them fish every day,” goes an old saying. So when verse 7 states that God holds victory in store for the upright and verse 8 says God guards the course of the just, it is because as verse 11 points out, God explains to them and gives them discretion.
Discretion is the freedom to decide what should be done in a particular situation. Consider the discretion of an investor. The discretion of an investor knows what will increase in value and what will decrease. They have financial know-how. With experience and instinct, they know that they are about to make a profit.
Likewise, God gives the excellent gift of wisdom thru fear of him and knowledge of him. The gift is understanding what is right and just and fair – every good path (9). The wonderful gift of God is that wisdom enters the heart, and knowledge is pleasant to my soul (10). Through this gift, God enables me to have life victories.