FUNDAMENTAL ANALYSIS

Fundamental analysis is a method of prediction that looks at available facts to come up with an idea of how the market will move. These facts may come from public statements, news reports, current events, and virtually anything else that might impact the value of an asset. The fundamental analyst then examines that collected data to try to predict new trends in the market.
For example, an analyst looking at currency pairs might watch for a public report from a country on their GDP, or an announcement from their central bank. An equity analyst might look at what a company’s quarterly reports show about their performance, or listen to announcements from a CEO to gain some insight into the direction a stock might take. It’s important for a fundamental analyst to keep both a broad view and a specific view, noting what is happening in the world at large, as well as what is happening on the micro scale in regards to their specific assets.
Unlike objectively-based methods of analysis, fundamental analysis is largely subjective. People may have different interpretations of what a CEO’s announcement means about the health of the company, or how an earthquake will affect the price of oil. Since there are no rules set in stone, fundamental traders are generally referred to as discretionary traders – they use their own judgment to decide what course of action to take, after analyzing all the data they have available.
Because it is subjective, most fundamental analysts find their ability to predict things like market direction improves as they get more practice. Fundamental analysts become experts at reading between the lines, to understand what exactly a data point might mean, and they also learn to connect the dots, combining many discrete data points into a comprehensive overall picture.
BinaryOption.com offer their user a real times news and announcement of economic events.

Fundamental analysis is one of the two major forms of investment analysis, and is the form most commonly used by binary option investors. The goal of investment analysis is simply to identify an asset to purchase, and to then determine what sort of contract to purchase. This asset might be an equity, an index, a commodity, or a currency pair. Fundamental analysis makes its assessment by looking at an asset’s underlying realities, examining things such as the health of a company, the rising demand for a commodity, or a country’s fiscal policy changes.

Many binary option investors appreciate fundamental analysis because it is a way to analyze the market which doesn’t require a specialized knowledge of calculus or statistics. Many forms of fundamental analysis are, in fact, common sense approaches to examining the outlook of a company or asset.

In fact, any time a binary option trader picks up a copy of the Wall Street Journal or visits a news website, he is performing a rudimentary form of fundamental analysis. Because the market responds so clearly to a wide range of stimuli from the outside world, keeping track of global threats of violence, instabilities in various economic zones, or major weather events can give an investor a distinct advantage in predicting the direction of assets. This sort of macro view is most often used when purchasing binary options on commodities, indices, and currency pairs.

When purchasing binary option contracts for equities, a much more specific form of fundamental analysis is generally used. In this sort of fundamental analysis the trader takes the target company and examines its revenue data, its book value, projected earnings, market share information, and any statements made by the CEO, CFO, or other key figures, to determine the real value of the stock.