A lot of times, people have a tendency to "take something out of context". When they do that, it can take away from the original meaning of what was said. For example: If I were at a Baseball game and said "everyone is wearing a red shirt," you can take it in it's context (how I meant it) and understand that everyone at the game is wearing a red shirt. If you take it "out of context" (if someone were to quote me later), you could believe I was saying everyone in the world is wearing a red shirt (which is clearly not the case). Contextual reading is understanding something "in it's context", how it was specifically meant, in that specific situation.
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