The Torah ideal is for us to have a positive self-image, while at the same time we must keep a distance from arrogance.
Think of a way that arrogance might prevent you from seeing your faults or mistakes. In order to overcome our faults and shortcomings, we first have to recognize them!
(For a series of probing questions on this topic, see Rabbi Pliskin's "Gateway to Self Knowledge," pp.127-9)
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