The gravitational clustering of collisionless particles in an expanding universe is modelled using some simple physical ideas. I show that it is possible to understand the nonlinear clustering in terms of three well defined regimes: (1) linear regime; (2) quasilinear regime which is dominated by scale-invariant radial infall and (3) nonlinear regime dominated by nonradial motions and mergers. Modelling each of these regimes separately I show how the nonlinear two point correlation function can be related to the linear correlation function in hierarchical models. This analysis leads to results which are in good agreement with numerical simulations thereby providing an explanation for numerical results. Using this model and some simple extensions, it is possible to understand the transfer of power from large to small scales and the behaviour of higher order correlation functions. The ideas presented here will also serve as a powerful analytical tool to investigate nonlinear clustering in different models.