There are three cases where the word psuchikos is used to a body. No English translation that I know of uses the word soulish. Consequently the distinction is obscured.
Now let’s look at the other places where the word psuchikos is used. Here we come to a point where there is a clear conflict between the soulish and the spiritual. 1 Corinthians 2:14–15:
But the natural man [the soulish man] does not receive the things of the Spirit of God, for they are foolishness to him; nor can he know them, because they are spiritually discerned. But he who is spiritual judges all things, yet he himself is rightly judged by no one.
So the soulish man is not in harmony with the spirit. He cannot receive the things of the spirit. He cannot understand them. You can talk to the most highly educated intellects and they have no ability whatever to understand the things of the spirit, because they are operating in the realm of the soul. This is important because it brings out, there is in a certain sense, an opposition between the spiritual and the soulish.
Then we go on to the Epistle of Jude verse 19 which is a rather illuminating verse. Talking about people who have made trouble in the church, the New King James says,
These are sensual persons, who cause divisions, not having the Spirit [capital S, the Holy Spirit].
But very obviously they are part of the church, because they cause division. So we have in the church both those who are spiritual and those who are soulish.
Then the most significant passage of all is James 3:15, which I will deal with at length. Talking about a certain kind of wisdom, James says,
This wisdom does not descend from above, but is earthly, sensual, demonic.
By now you have arrived at the conclusion that sensual is soulish. So there is a kind of wisdom that is soulish. And there is a decline, descending in three stages. First, earthly; second, soulish; third, demonic. I believe this is the main way in which demons get into the work of God, the people of God, the church of God. It is through this decline from the earthly, to the soulish, to the demonic.