The Player Guide is full of wonderful information such as what you are asking, young Wizard. Please take a moment to review the Player Guide before continuing to play.
PIPs Players receive a PIP each turn of the duel. PIPs are represented by small white dots along the front inside arc of the sigil that the player is standing in. If the PIP is a Power PIP, it should be glowing brighter and yellow. Power PIPs count as TWO PIPS towards spells in your main school of focus. Players are eligible to receive Power PIPs after level 10. You can increase your chance of receiving Power PIPS with certain clothing and jewelry.
Spells require a certain number of PIPs before they can be cast. Some spells have a PIP requirement that is represented by an X. This means that the spell will be more powerful of you have more PIPs when you cast it.
If you are over level 10, Diego in Unicorn Way has an important tutorial for you!
Don't call me stupid because i'm level 26 or 27. hen i have many pips i have lights around me. What do they mean?
The lights are just animation. There are more and brighter lights with the more pips you gain. Even after you use up your pips, I'm pretty sure the lights stay with you. My guess is those lights are purely for decoration and not anything functional.
Oh, he means the bling that builds up around you the more pips you have. I reckon' it's just a graphical touch to show that you have built up a lot of power.