I passed level III, and I'm outa here. I went 3/3 thanks to my hard work and my lucky star.
This forum has been a good source of info during the past three years, so I thought I'd leave my parting thoughts here in the level I forum. Hopefully I'll pay it forward by helping someone out there.
There is no secret to passing the exams because the biggest determining factors are your education, experience, and intelligence. I'm not greatly educated or experienced, so I studied my arse off to pass the exams. Others study very little, and some don't even buy the textbooks. You have to accurately appraise yourself to determine your optimal method of exam preparation. What works for some people will not work for everyone.
For first-timers, you should know that many exam questions include two or more parts. This greatly complicates matters. There are a lot more questions on each exam than you might think. The prep course questions don't accurately reflect this unusual question style. Be ready for it.
Also for first-timers, use the LOS. I was an idiot when I started this process, and I ignored the LOS at level I. Some of the material in the readings is not in the LOS. Don't study it. Some LOS are quite detailed, so be sure you understand EVERY single word and concept in the LOS.
I recommend buying the textbooks. I used Stalla for level I, and Schweser for levels II and III, in addition to purchasing all the textbooks. I didn't even open the Schweser books for level III, and I barely touched them at level II. (My employer paid for everything, so I purchased them just in case.) I used Stalla quite a bit at level I, and I was really unprepared for the exam. I got lucky and passed. For levels II and III, I read all the books and did all the problems. I passed II and III easily. Reading the books and completing the problems takes a lot of time and effort, but do you really want to risk taking the exams more than once? Many of the textbook problems are way more difficult than those found in the prep courses, and some of the textbook questions show up on the exams nearly verbatim.
Level I is basic finance that doesn't require much effort, relative to levels II and III. Level II contains a ton of math and technical analysis. Level III focuses on softer subjects that are misleading in their simplicity. Each level builds on the previous material, so take the exams consecutively if possible (i.e., don't skip a year). You will see level I material on the second and third exams, and level I and II material on the third exam.
For me, the most frustrating aspect of the exams was the sampling nature of the tests. At each level you are assigned a mountain of material, but the exam will include just a fraction of the material. The difficulty of the material was not nearly as troublesome as the amount of material. Some people try to guess what will be on the exam, focus on that material, and ignore or briefly study the remaining material. This is a dangerous strategy. For example, option pricing is a big part of the level II material, but the Black Sholes Merton material wasn't even on the level II exam in 2005!!! I spent weeks memorizing the hideous BSM equations, all for naught. However there was a question about a basic level I concept on the level II exam. Guessing what will be on the test is a mug's game. Study all the material as though it will be on the exam. Besides, if you get a charter, you will be expected to know all of it.
When should you start studying? There is no good answer to this very common question. Start early, and leave yourself plenty of time for final preparation. I studied for 9 weeks for level I, about 7 months for level II, and about 5 months for level III. But that really is irrelevant. You need to spend as much time as it takes to be �comfortable� with the material. You need more than a passing familiarity, and you need more than a basic understanding. You need to be comfortable discussing and questioning the material as though you were going to teach the material to other people. The exam questions are really, really difficult, and a basic understanding of the material is nowhere near adequate.
Final prep should include at least 2 weeks of practice exams. Do the CFAI exams. Do the Schweser exams. Cruise the Analystforum boards. Purchase the practice exam from your local CFA society, or the Boston society's exam (Boston produces a really good sample exam for each level). You shouldn't be learning the material right before the exam, rather you should be sharpening your test-taking skills.
What�s the best test-taking strategy? Should you blast through the exam and complete all the easy questions first? Or should you do each question in order, no matter the difficulty? Again, it depends on your strengths and weaknesses. There is no good answer to this question either. In fact, consider everyone�s advice, including mine, in light of your strengths and weaknesses.
Finally, relax on exam day. You�ve already passed or failed the exam when you open that test booklet. There�s nothing you can do on exam day to change your fate. Either you�re ready or you're not, based on your preparation. On exam day you�re merely exhibiting your preparation, nothing more or less. You�re not going to get smarter while you stare at question #38 for 10 minutes. Either you know it or you don�t know it. If you don�t know it, don�t freak out. The passing score for the exams must be somewhere around 60% to 70%. You can miss a lot of questions and still pass. So don�t lose your composure when you feel like you�ve totally missed a question. Erase it from your mind and move on, confident in your ability. But if you didn�t prepare very well, it would be time to start freaking out.
Good luck. I hope this repays my debts to this great website.
Jeff
This forum has been a good source of info during the past three years, so I thought I'd leave my parting thoughts here in the level I forum. Hopefully I'll pay it forward by helping someone out there.
There is no secret to passing the exams because the biggest determining factors are your education, experience, and intelligence. I'm not greatly educated or experienced, so I studied my arse off to pass the exams. Others study very little, and some don't even buy the textbooks. You have to accurately appraise yourself to determine your optimal method of exam preparation. What works for some people will not work for everyone.
For first-timers, you should know that many exam questions include two or more parts. This greatly complicates matters. There are a lot more questions on each exam than you might think. The prep course questions don't accurately reflect this unusual question style. Be ready for it.
Also for first-timers, use the LOS. I was an idiot when I started this process, and I ignored the LOS at level I. Some of the material in the readings is not in the LOS. Don't study it. Some LOS are quite detailed, so be sure you understand EVERY single word and concept in the LOS.
I recommend buying the textbooks. I used Stalla for level I, and Schweser for levels II and III, in addition to purchasing all the textbooks. I didn't even open the Schweser books for level III, and I barely touched them at level II. (My employer paid for everything, so I purchased them just in case.) I used Stalla quite a bit at level I, and I was really unprepared for the exam. I got lucky and passed. For levels II and III, I read all the books and did all the problems. I passed II and III easily. Reading the books and completing the problems takes a lot of time and effort, but do you really want to risk taking the exams more than once? Many of the textbook problems are way more difficult than those found in the prep courses, and some of the textbook questions show up on the exams nearly verbatim.
Level I is basic finance that doesn't require much effort, relative to levels II and III. Level II contains a ton of math and technical analysis. Level III focuses on softer subjects that are misleading in their simplicity. Each level builds on the previous material, so take the exams consecutively if possible (i.e., don't skip a year). You will see level I material on the second and third exams, and level I and II material on the third exam.
For me, the most frustrating aspect of the exams was the sampling nature of the tests. At each level you are assigned a mountain of material, but the exam will include just a fraction of the material. The difficulty of the material was not nearly as troublesome as the amount of material. Some people try to guess what will be on the exam, focus on that material, and ignore or briefly study the remaining material. This is a dangerous strategy. For example, option pricing is a big part of the level II material, but the Black Sholes Merton material wasn't even on the level II exam in 2005!!! I spent weeks memorizing the hideous BSM equations, all for naught. However there was a question about a basic level I concept on the level II exam. Guessing what will be on the test is a mug's game. Study all the material as though it will be on the exam. Besides, if you get a charter, you will be expected to know all of it.
When should you start studying? There is no good answer to this very common question. Start early, and leave yourself plenty of time for final preparation. I studied for 9 weeks for level I, about 7 months for level II, and about 5 months for level III. But that really is irrelevant. You need to spend as much time as it takes to be �comfortable� with the material. You need more than a passing familiarity, and you need more than a basic understanding. You need to be comfortable discussing and questioning the material as though you were going to teach the material to other people. The exam questions are really, really difficult, and a basic understanding of the material is nowhere near adequate.
Final prep should include at least 2 weeks of practice exams. Do the CFAI exams. Do the Schweser exams. Cruise the Analystforum boards. Purchase the practice exam from your local CFA society, or the Boston society's exam (Boston produces a really good sample exam for each level). You shouldn't be learning the material right before the exam, rather you should be sharpening your test-taking skills.
What�s the best test-taking strategy? Should you blast through the exam and complete all the easy questions first? Or should you do each question in order, no matter the difficulty? Again, it depends on your strengths and weaknesses. There is no good answer to this question either. In fact, consider everyone�s advice, including mine, in light of your strengths and weaknesses.
Finally, relax on exam day. You�ve already passed or failed the exam when you open that test booklet. There�s nothing you can do on exam day to change your fate. Either you�re ready or you're not, based on your preparation. On exam day you�re merely exhibiting your preparation, nothing more or less. You�re not going to get smarter while you stare at question #38 for 10 minutes. Either you know it or you don�t know it. If you don�t know it, don�t freak out. The passing score for the exams must be somewhere around 60% to 70%. You can miss a lot of questions and still pass. So don�t lose your composure when you feel like you�ve totally missed a question. Erase it from your mind and move on, confident in your ability. But if you didn�t prepare very well, it would be time to start freaking out.
Good luck. I hope this repays my debts to this great website.
Jeff