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Often, when we look at a complex problem or scenario, we may not be able to explain it fully or even make coherent sense of it from the get go. This is what we are faced with if we try to explain how the stock prices will change, or how the GDP of a nation is impacted by everything that is happening in the world, or how the Solar System revolves around the centre of the galaxy.

But that doesn't mean we can't understand them. We just need to simplify things a little until we reach a level that we do comprehend.

When we are taught accounting in B-school, or when we are taught the forces affecting the motion of bodies in Physics class, we don't start with the full complexity of the real world.

Instead, we learn the concepts in a very simplified version of the real world. And as we begin to understand something, we add additional layers of complexity.

Similarly, when we are faced with a complex scenario, we need to do the reverse and keep simplifying them until we reach a layer that we do understand. And then we build back up from there.

When confounded, simplify. 

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