There are three phases to good Bible study:
Discovery (observation)
What does the text say?
Understanding (Interpretation)
What does it mean?
Application What does it mean for me / us?
Remember to ask good questions:
Who is the writer?
is he writing to?
is he writing about?
is speaking?
is being spoken to?
Where is the writer writing from?
is the intended audience of the letter / prophecy / book?
is the writer referring to?
is the action taking place?
When is the writer writing?
is the incident her refers to?
What kind of writing is this? (narrative / poetry / prophecy / parable / teaching etc.)
is happening or has just happened?
Why is this happening? (Look for clues in the text rather than jumping to an
interpretation)
is this incident recorded?
How does this passage relate to the rest of the book?