The Way of Peace School of The Empty Hand
We should seek unity, harmony, and peace within ourselves and the world around us. Do not look to one way of doing things or one technique. Instead, internalize all you have learned, to become water that takes the shape of the situation, and the path of least resistance. Do not meet force with force, but avoid attacks with body movements, footwork, and deflection. Blend naturally with opposing energy to find an advantage or solution.

Zanshin
"Remaining mind" / Awareness.

Haragei
Breathing art/"Belly art"/Body Focus. Breathe, relax, and settle your body, naturally.

Mushin
"Mind-without-thinking"/Mental Focus. Empty your mind and be fully aware of all angles. Do not concentrate on one technique, but let your principles guide you according to the situation.

Kiai
"Life force harmony"/Spirit Focus. Exert your spirit in a powerful yet natural way. Be flexible, intimidating, and untouchable.

Tai Sabaki
Body management/body shifting/"optimum utilization". Wado-Ryu movements are performed with economy of motion.

The 3 body shifting methods - San mi Ittai
These are the 3 body shifting methods that typify Wado-Ryu.
Ten-i - Move away from the attack.
Ten-tai - Turn and realign the body to dodge the attack or reduce the area on your body that is vulnerable to attack.
Ten-gi - Perform techniques while the attack passes through. Consider using his/her momentum to your advantage.

Timings for counter attack
Consider uses for the body shifting methods.
Go no Sen - Defensive attack. Counter once the attack is completed, but before the opponent is able to attack again.
Sen - Simultaneously attack with the attacker. You will complete your counter first, and/or displace the attacker's movement.
Sensen no Sen - Preempt the attack with your own, by perceiving your opponent's intent. This will catch him/her off guard, breaking his/her mental balance.

Defensive movements
Heavily influenced by Shindo Yoshin-ryu jujutsu, these movements are used to control the opponent's energy. These movements apply maai and body shifting. Consider uses of the timings for counter attack.
Nagasu - Flowing / Fluidity. Move evasively off the line of attack but closely enough that the attacker's force can be used to add to your own. Often combined with penetrating into an opponent's side (irimi).
Irimi - Move to enter the opponent's attack.
Inasu - Move under, inside, or around the attack.
Noru - Control the opponent's movement.

Maai
The state of mind and spirit of the combatants, and the distance between them. Keep enough space to attack and defend. At a high level, you control the spirit and energy of a conflict. Draw a reaction from the opponent that will give you a tactical advantage. Practice the above principles to understand maai, and practice maai to apply the following. Never stop studying tactics so you may better see from this broad view.

Ki Ken Tai no Ichi
Coordination of mind and body in movement. Thought and action must become one; there is no time to concentrate on thought in battle.

Hei Jo Shin
"Calm mind and body". When the opponent feints or draws a weapon, you should not flinch, but be prepared. Harness the adrenal state so that you do not panic, but fight reflexively.