This doesn't just mean "don't lie" or "don't get caught lying." It means that whatever courses of action you choose to take, you have to make sure that they are convincing and congruent with the environment. A magician is very convincing.
Things aren't always about facts but about emotions, what people see, or how things appear, and about the people you surround yourself with -- the people others will see, then proceed to judge you by -- and how you handle yourself in budding relationships. Don't be afraid to accept favors and give favors without the presumption of your favor being returned. Franklin has said something on this to the effect of "ask to borrow people's books, even though you don't intend on reading it."