Security Operation & Risk Management

1.1       What is technical analysis?

           1.1.1    Price discounts everything

           1.1.2    Price movements are not totally random

           1.1.3    Technical Analysis: the basic assumption

           1.1.4    Strengths and weakness of technical analysis

                      1.1.4.1 Importance of technical analysis

                      1.1.4.2Weaknesses of technical analysis

2.1The charts

2.2Candlestick analysis

      2.2.1One candle pattern

              2.2.1.1Hammer

              2.2.1.2Hanging man

              2.2.1.3Shooting star and inverted hammer

      2.2.2Two candle pattern

              2.2.2.1Bullish engulfing

              2.2.2.2Bearish engulfing

              2.2.2.3Piercing

              2.2.2.4Bearish harami

              2.2.2.5Bullish harami

       2.2.3Three candle pattern

             2.2.3.1Evening star

             2.2.3.2Morning star

             2.2.3.3Doji

3.1What are support and resistance linesSupport

            3.1.1Resistance

            3.1.2Why do support and resistance lines occur?

            3.1.3Support and resistance zone

            3.1.4Change of support to resistance and vice versa

            3.1.5Why are support and resistance lines important?

3.2Head and shoulders

            3.2.1Head and shoulders top reversal

            3.2.2Inverted head and shoulders

            3.2.3Head and shoulders bottom

3.3Double top and double bottom

            3.3.1Double top

            3.3.2Double bottom

           3.3.3Rounded top and bottom

3.4Gap theory

           3.4.1Common gaps

           3.4.2Breakaway gaps

           3.4.3Runaway/continuation gap

           3.4.4Exhaustion gap

          3.4.5Island cluster

4.1What does a technical indicator offer?

              4.1.1Why use indicator?

              4.1.2Tips for using indicators

              4.1.3Types of indicator

              4.1.4Simple moving average

              4.1.5Exponential moving average

              4.1.6Which is better?

4.2Trend following indicator

             4.2.1When to use?

             4.2.2Moving average settings

             4.2.3Uses of moving average

             4.2.4Signals – moving average price crossover

             4.2.5Signals – multiple moving average

4.3Oscillators

             4.3.1Relative strength index

                       4.3.1.1 What is momentum?

                       4.3.1.2Applications of RSI

                       4.3.1.3Overbought and oversold

                       4.3.1.4Divergence

                       4.3.1.5Stochastic

                       4.3.1.6William %R

                       4.3.1.7Real life problems in use of RSI

                       4.3.1.8Advanced concepts

            4.3.2Moving average convergence/divergence(MACD)

                        4.3.2.1What is the macd and how is it calculate

                        4.3.2.2MACD benefits

                        4.3.2.2uses of MACD

                        4.3.2.3Money Flow Index

                        4.3.2.4Bollinger Bands

4.4Using multiple indicators for trading signals

           4.4.1Price sensitive technique

           4.4.2Volume sensitive techniques

           4.4.3Composite methods

           4.4.4How to use tool kit of trading techniques

           4.4.5Trading market tool kit applications

           4.4.6Bull market tool kit application

          4.4.7Bear market tool kit application

          4.4.8Trading market changing to bull market tool kit application

          4.4.9Trading market changing to bear market tool kit application

          4.4.10Bull market changing to trading market tool kit application

         4.4.11Bear market changing to trading market tool kit application

5.1Day trading

         5.1.1Advantages of day trading

         5.1.2Risks associated with risk day trading

5.2Strategies

         5.2.1Strategies for day trading

         5.2.2Momentum trading strategies

6.1Introduction

6.2Principles of Dow Theory

6.3Significance of Dow Theory

6.4Problems with Dow Theory

6.5Elliot Wave

       6.5.1Introduction

       6.5.2Fundamental Concept

       6.5.3After Elliot

7.1Introduction

7.2Risk Management

      7.2.1Components of risk management

               7.2.1.1Stop loss

               7.2.1.2Analyze reward risk ratio

               7.2.1.3Trail stop loss

               7.2.1.4Booking Profit

              7.2.1.5Uses of stop loss

              7.2.1.6Qualities of successful trader

              7.2.1.7Golden rules of traders

              7.2.1.8Do’s and don’ts in trading

7.3Rules to stop losing money        

7.4Choosing the right market to trade

      7.4.1 Importance of discipline in trading

NISM-Series-VII:  Securities Operation & Risk Management Certification

Revised NISM-Series-VII: Securities Operations and Risk Management Certification Examination w.e.f August 25, 2017.

The examination seeks to create a common minimum knowledge benchmark as the requisite standard for associated persons of a registered stock-broker / trading member / clearing member in recognized stock exchanges, involved in (a) assets or funds of investor or clients (b) redressal of investor grievances, (c) internal control or risk management and (d) activities having a bearing on operational risk.

Assessment Structure

The examination consists of 100 questions of 1 mark each and should be completed in 2 hours. The passing score for the examination is 50%. There shall be negative marking of 25% of the marks assigned to a question.

Test Details:

Name of Module: NISM-Series-VII: Securities Operations and Risk Management Certification Examination

Fees (Rs.) Test Duration (In Minutes) No. of Questions Max. Marks Pass Marks* (%) Certificate Validity (In Years)
1500+
120
100
100
60
3

+: Inclusive of Service Tax. Payment Gateway Charges extra.
*: Negative marking – 25% of the marks assigned to the question
# Passing Certificate will be issued only to those candidates who have furnished/ updated their Income Tax Permanent Account Number (PAN) in their registration details.

Weightage: 

NISM Currency Exam (CD) Syllabus Weightages (Syllabus wise question %)
Unit 1: Introduction to Securities Markets
5%
Unit 2: Market Participants in the Securities Markets
10%
Unit 3: Introduction to Securities Broking Operations
20%
Unit 4: Risk Management
15%
Unit 5: Clearing Process
15%
Unit 6: Settlement Process
15%
Unit 7: Investor Grievances and Arbitration
10%
Unit 8: Other Services Provided by Brokers
10%

Programme Fees: Rs.10000+GST

Note : Examination fee of SEBI certification exam is extra.

Course Duration: 1 Month