Every word you read must be understood in the light of the words that come before and after it. Many passages will not be understood at all, or understood incorrectly, without the help afforded by the context. A good example of this is the Mormon practice of using 1 Cor. The interpreter must have some awareness of the life and society of the times in which the Scripture was written. The spiritual principle will be timeless but often can't be properly appreciated without some knowledge of the background.
Interpretation is merely logical reasoning.
When interpreting Scripture, the use of reason is everywhere to be assumed. The Bible was given to us in the form of human language and therefore appeals to human reason - it invites investigation. Too frequently such a person uses a basis of appeal that is a notorious violation of the laws of logic and evidence. Just as a judge's chief occupation is the study of previous cases, so must the interpreter use precedents in order to determine whether they really support an alleged doctrine. The parts of Scripture being interpreted must be construed with reference to the significance of the whole.