THE COMPANY

Qualitative analysis can begin either from the top, by analyzing the market as a whole, or from the bottom, by looking at an individual company. In binary trading most investors choose to start by looking at a specific company for which they are interested in purchasing a contract. This provides a baseline fundamental analysis, to which industry and market factors can be applied to paint a more accurate picture of stock price directionality.

A qualitative fundamental analysis of a company generally begins with examining the core management team. Public companies usually make a great deal of information about their management team available online, and this is a good place to start. Look at the educational background of key players, and look at companies they have managed in the past, to see how those companies performed under their guidance. If members of the team have worked together in the past on projects, give the performance of those projects special weight, as often the way a team performs together is a more important factor in long-term success than individual prowess. Beyond information supplied by the company, interviews with management can reveal their philosophy and plan for the company.

Interacting with various aspects of the company is another excellent way to gather qualitative data about a company a trader is considering for a binary option contract. Calling their technical support lines, visiting their website, and using their products will all give a trader an understanding of the company that is just as important as their financial data. Many companies will be happy to have a media contact person speak reach out to investors, or to take them on a tour of one of their facilities. All this can give traders the opportunity to see how the actual corporate culture of the company operates, and may present red flags or give traders further confidence for potential binary option positions.