The only time I use the drag on my fly reel is so I can strip lots of line off the reel quickly without it over spooling. For playing a fish, just the palm of your hand.
A good quality line can compensate a bit for a cheap rod. One that glides nicely through the guides, has a well balanced profile and doesn't have line memory which will (a) slow down the line shooting through the guides and (b) be really annoying on the water.
A good quality rod can't make a cheap line perform though.
I learnt quickly to not skimp on buying a cheap flyline. You'll just end up wanting to chuck it and get something decent. Giving it a clean (there's a few good products to use, but just a clean damp cloth to wipe it through is good), not leaving it on the reel with nylon leader wound tightly on top of it, not left in the sun at home or in the car etc. A good line should last years.
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