Psalms 2:6

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6 Yet have I set [nacak] my king [melek] upon my holy [qodesh] hill [har] of Zion. [Tsiyown]    KJV-Interlinear

6 "But as for Me, I have installed My King Upon Zion, My holy mountain.”   NASB

While it is mans plan to cast off Gods rules and mandates, and go mans own way through eternity, it is Gods plan to install truth and justice and place His own King into power to rule forever.

This expression is coming from God Himself.  God makes this statement in reply to mans statement from verse three – to cast away their (Gods) cords, etc.

Man has his plans and God has His plans, and neither set of plans are compatible with the other.

Verse three refers to God in the plural, a reference to the Godhead (Trinity) from mans point of view, in rejecting God, His plan, and His Savior and Ruler.  This verse refers to God collectively in the singular, referring to all three members as one united purpose and plan. 

Likewise, this verse sets the stage for a strong relationship between God and His selected King (verses man and mans selected rulers), and that this selected King will rule from a Holy place, namely Mt. Zion - truth, (verses man who will rule from the source of the world - imagined truth or lies).

Mt. Zion was, or is, the southern hill in the city of Jerusalem.  It was the highest point within the city.  Whereas Jerusalem is often called the city of peace, Zion is often called the site of power, the holy hill, the hill of holiness, the residence of God.  It was called that because it was set apart (separated from humanity, sin and evil and death) and therefore became the symbolism of Gods residence.

No man can approach the hill, Zion, unless they first enter (salvation) into the city, and then walk or travel through the city (spiritual growth), and then gain full access to the mountain (maturity).

However, Zion is the residence of God, and to rule there and reside there, one must be Himself, God.

So this psalm is not only setting into contrast mans plan verses Gods plan, but it is setting the stage for presenting the King, Gods appointed, as one and the same as the Messiah, Gods chosen, who is both man (born), and God (deity), in the same person, the unique person of the universe, Jesus Christ.

‘God has set.’  This indicates that Gods plan is the one and only plan which will prevail.  Mans plan(s) will not.

Gods plan will prevail on truth.  Mans plans are made up of nothing more than imagination (deceit, lies, made up things).

God will carry forth His own purpose and plan for all, despite all opposition and attempts of man (or satan) to do otherwise.