Lucky is the step for which the path got its name. It has only one ability, and it is not active: Passive Luck.
The bearer is simply lucky. The canon lists this matter-of-factly and therefore convincingly: he finds money in the street, enemies miss him, dice fall the way he needs them to, and the woman he has taken a liking to happens to be not indifferent to him.
The irony of the step is that the Lucky one cannot control this yet. Luck comes on its own, whenever it will, and exactly in the form it wants. The first glimmers of power over one's own fortune will only appear in the Winner at the fifth step.
In battle, such a property is deceptive: it does not save you from someone stronger, but it turns any accident into an ally—and there are more accidents in battle than it seems.
The formula's composition is a match: a flower of good luck, earth from the place where it grew, and a gold or silver coin picked up within the last three days.