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NCFM Workbook on Technical Analysis – A must read!

November 23, 2013

Traders,

Review: NCFM (NSE’s certification on financial markets) workbook on Technical analysis

Price Discounts Everything !

Technical Analysis is the science or an art of forecasting the direction of prices through the study of past market data, primarily price and volume. Technical Analysts (TA) don’t question the information that can affect the price like a Fundamental Analyst but believe that price movements are not totally random, and prices move in trends. TA’s use charts to look at trends in the past and assume that prices will behave the same way as in the past under similar circumstances.

It is important that every beginner to intermediate trader follow and have a sound understanding  of technical analysis, which would mean avoiding taking counter trend trades, one of the foremost reasons for amateurs blowing up their trading accounts.

A hidden gem for everyone looking to learn the basics of Technical Analysis, and available completely free on the NSE website is: NCFM workbook on Technical Analysis. The book starts of  with an introduction to technical analysis and candlesticks just enough to not bore a beginner, goes onto pattern study like Head & Shoulder, Indicators and Oscillators like EMA and RSI, and introduction to Dow and Elliot wave theory. It also has a very interesting section on trading psychology, and risk management with introduction to concepts like Stop-loss and Risk Reward Ratio.

I would give this a 4.5/5 and would say is a must read for all beginner traders.

So before you spend another penny on a new book,make sure you download and read up the NCFM workbook on Technical Analysis.

Happy Learning,

 



Founder & CEO @ Zerodha


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60 comments
  1. Harshit says:

    Can any body tell me that if I qualify the ncfm technical analysis module can I introduce my self as technical analyst certified by sebi and share my view on stock?
    Or I can add this tag as my designation.

  2. Ajit Kumar says:

    Hi Nithin,

    Can you please suggest good books for stocks for intermediate level? I am going through Intelligent Investor and i am enjoying a lot 🙂

    Thanks,
    Ajit

  3. Gautam bhardwaj says:

    A big pain in just opening account customer care no is of no use Mr Kamat should himself call and see the customer care ,how to open a account with zerodha can any one resolve my problem

  4. Arghya Das says:

    Hi Can You Please Provide Download Link For NCFM Workbook On Fundamental Analysis?

  5. Roshan Sarukte says:

    Hello
    Mr Nitin
    Myself Roshan
    21 year old
    I have your NCFM PDF
    Can you help me out how with cracking exam by giving details of examination mode and important question also mock practice of test
    Where do I find the practicing of test ?

    Please help me out

    Warm regards

    Roshan Sarukte

  6. dheeraj gole says:

    sir i m also submit my all documents for open my trading and demat acount , my trading acount is open bt my demat acount is not open and i m not unable to nse and bse segment for trading so plese sir help m……

  7. Rahul Dhoka says:

    Hi Nithin,

    Just a small request, in both Kite and Pi as a technical tools we have only fibonacci retracement but we don’t have fibonacci extension… When can we expect the same in the technical tool..

  8. Deepak says:

    I have Zerodha a/c

    I m holding BEL shares

    I dint get offer for buy back, but I want to sell my holding as buy back to company.

    How can i do so using my zerodha a/c

  9. praveen says:

    & one more thing can i provide stock analysis tips professionally just by passing this small exam or in india one should have to pursue any mba economics degree for becoming a technical analyst. plz share the information i m serious in makibg my career in this field.

  10. praveen says:

    Thanks nithin. plz also suggest from where can i get hindi version of this technical analysis ncfm book. As nse refused and the downloaded were in english.

  11. Adnan says:

    Thanks a Lot Mr. Nithin Kamath,
    Hatsoff to you.
    You have great art of writing.
    Your blogs are easy to understand.
    Great initiative learn and earn.
    Keep educating us.

  12. chandrasekhar kara says:

    Greetings,
    i have just joined zerodha.previously i was trading on ventura.i have also some experience with sharekhan & icici direct but comparatively zerodha is awsoooooomeeee.
    since i am totally new to trading i except some experience,advise,knowdge from u.

  13. Rachit says:

    Hi Nithin,
    It’s really been great expirenc here at zerodha
    Can u suggest some good books on advanced option strategies or advance derivative analysis

    Tans a ton in advance

  14. Adhik says:

    hi Nithin..
    you have interviewed so many traders…based on that and as per your knowledge, which 2-3 books you would recommend for TA, money mgt. etc that must be read by the traders..

  15. prema says:

    hi i want to gain some knowledge about mcx basemetal and energy for day trading can u pl suggest me some?

  16. Shashi Karkhanis says:

    Hi Nithin,

    Thanks for your Reply.

    Yep I had read about these strategies before also. Its very well explained in Layman terms in Zerodha Column. But I find them Extremely difficult to understand & work on them. Probably a Detailed study in future will help me (If I choose to trade in this manner). But directional movement is working better (with little risks also involved) as I understand Demand & Supply zones very well in certain Time Frames.

    What you have mentioned is Extremely correct, It’s better to stick to what I enjoy the most & good at doing. I would love open an account with Zerodha also. I stay in Mumbai, are you people operational in Mumbai also ?

    Thanks again for your Prompt Reply.

    • Shashi, We are online, so we are everywhere. 🙂 But yes, we have our sales partners in Mumbai who can help you get started with us. Our own team is also looking at setting up a sales team in Mumbai soon. Will get someone from our team to email you the account opening details.

      Cheers,

  17. Shashi Karkhanis says:

    Hi Nithin,

    I am very much impressed by people like you. I am also a Trader since last 2 years & enjoying my Trades on Nifty. I used to deal in Futures but since last 6 months now deal in only Nifty Options. I take Directional movements & mainly use Trail SL in almost all my Trades. Lot of my friends use Strategy planning in Options. I wanted to know your opinion about this ? Do you think Directional movement is Better or Strategy Hedging / Planning is better in Options ? Thanks !!

  18. Hi Nithin,

    The link you shared: http://www.nseindia.com/education/content/module_ncfm.htm ,
    mentions of certification exams. If we make payment for the module are we only eligible for the certification exam or do we also get training material for the course?

  19. Is there any online training course on trading/Technical Analysis. If so please inform.
    I live near Kochi and I don’t think there are any quality training course in Kerala.

  20. Sunil says:

    Is this book or same pdf book available in hindi? or any TA book in hindi, if available please provide me link or name of book

  21. KS says:

    The download link above does not work. Is there a new link?

  22. sunil says:

    hi nithin whr can we find iv of stock options nowadays its not visible in option chain of nse website

  23. RV1000 says:

    Hi Nithin, Thank you. Also let please let me know if you have come across a similar book on options!

  24. Arun D Tamannavar says:

    Its really a fantastic book. I was supposed to join technical analysis workshop by paying 20K. I came across NCFM program and while browsing NSE site I got download link for this. I just jumped on it and lo – there is no need to join workshop.

    • Mantu says:

      hi
      You read this in dec 2013 and i read this in last week. I want to know from you , Have you made money by using the technique given in NCFM ? Can i also use the same technique properly to make money.

  25. GirishSrikantiah says:

    Thank You Nithin for creating Zerodha in Indian Financial Service Sector

  26. rajath says:

    thank you very much for the update

  27. satishreddy says:

    GIVE ME AN EXAMPLE i.e Price discounts everthing….

  28. Rajesh V says:

    Thanks Nithin