Channelling is a combat mechanic that gives Ken the ability to stun enemies, opening them up for a massive secret technique attacks. Eventually you will unlock the ability to use Perfect Channelling which will enable Ken to deal extra damage to an opponent. Perfect Channelling is one of Ken's best abilities and should be used whenever possible.
Armour and Accessories:
As well as upgrading Ken's abilities you also need to make sure he is well equipped to deal with anything the ruined wastes of the lost world has to throw at him. This means making sure his armour and accessories are in order, failing to do so will mean you will struggle against the enemies in the later stages of the game.
Resist the temptation of only upgrading health and damage and neglecting the other upgrade paths. Although Body upgrades like health and attack power are important there are just as many lethal additions you can add to Kens's arsenal by upgrading Mind and Skill.
Try to complete as many side-missions as possible as you work through the main story. You will find the substories short and enjoyable and will enable you to earn Destiny Points, cash and useful items as rewards. The Destiny Points are a valuable currency as they allow you to upgrade Ken's abilities.