My Opinion on How To Study for CFA, Series 7, etc.

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aarishpatell

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Thoughts on How to Approach These Kinds of Exams:

Know Your Level
-Depending on where you are, you may need more or fewer hours. Someone like myself, with a background in finance, an MBA and 5 years of work experience in finance probably doesn’t need as much time spent as someone who is just learning what an enterprise value is. There is no shame in wherever you are, but you just want to be realistic and make sure that you’re putting in enough time. You want to make sure you don’t want to repeat the test just because you didn’t prepare optimally, or because you were embarrassed to admit you needed more hours than your peers. The satisfaction will come in passing, so study and make it happen.
Understand What is Actually Difficult
-To most people, this isn’t a difficult exam in terms of the large majority of the material. If you think that, maybe this isn’t for you. Not to be condescending, but this is a very basic test and these topics get much more complicated. The CFA differentiates passers / failers not by who knows the topics the best, but by who can memorize a lot of terms, understand very basic concepts and fill equations the best. I believe they make it purposely tedious to differentiate. So, be ready for this and approach it with a good attitude.
Think to yourself, I can pass this exam if I put in the work that is required, based on the level that I am at. If I don’t, I certainly won’t pass. When you start getting tired / frustrated, take a step away. Remember, frustration and lack of commitment are the only things that should keep you from passing. Make sure you memorize terms, know the equations and understand how one factor within a concept flows with / influences another. These are the key ways they will test your knowledge.
Also remember, no one comes in memorizing everything. If there is some very obscure question, it will likely be difficult for most everyone. Knowing obscure portions is important, but not to the extent that it gets in the way of knowing the most tested and basic concepts very well.
Spend Less Time Talking about What to Do and Do It
-Enough said. Get down to work and don’t talk about what you’re going to do. I know I’m here doing this, so you can call me a hypocrite, but I’m writing this because I’m very interested in this process of maximizing my abilities and I’m hoping to get feedback from the group. If you’re interested in stuff like this, you might want to try books like ‘Art of Learning’ by Waitzin. Blows my mind personally.
Start High Level and Gradually Get Deeper in Detail
-If you tested people who took the exam 2-3 years ago without giving them the opportunity to study again, I’d expect them to do very poorly. I’ve largely noticed from intelligent peers that the retention rate of this material is very poor. Just look at how we take ethics three times and most people (including myself) have to prepare each time for it. So, remember, don’t memorize stuff too early. I think the right way is to start with general concepts and then get more and more into details as the test nears. Memorize terms, equations when the test comes up nearer, but work to understand big picture concepts very early in the process. My wife is just painting a beautiful landscape, and she also has a similar process. She fills in the outline, then the colors and then the details. Our preparation is analogous, in my opinion.
Do Lots of Questions
-You can sit there and read the hundreds of pages of material for many hours, and then you’ll probably notice that it is still very difficult to bring yourself to know a lot of the answers to the questions. Answering the questions is when you really test yourself. Start relatively early.
Learn from the Questions and Take Notes
-This is a key way to learn. You’ll learn the big picture material earlier in the process, and as you take questions, they will force you to learn more detail. Keep a log of all the questions you get wrong, and look up the answers in the text. Read more than just the relevant material to your question, and take it as an opportunity to brush up on that topic. Do this a lot and don’t worry about your scores until you get closer. The idea is to build your idea base, not to pass the practice test. Don’t give yourself credit for getting an answer right unless you got it right due to knowing the information (vs. a random or educated guess). Those count as incorrect answers when you practice.
Make Your Weaknesses Your Strengths
-Especially as the test gets really near, take pride in opening the book and learning details you didn’t know before. Spend a few hours reading up on whatever topics are weakest and make them your strengths. However, make sure always to pay most attention to the most tested areas.
Simulate the Actual Test Day
Make sure you don’t get caught off guard on test day. Be ready for the time of day the test occurs, practice getting to the exam room, think of whatever could potentially go wrong and have solutions (calculator, pencils, train schedules, parking, etc. etc.). This will help you relax and be in auto pilot about everything but the actual exam.
Actual Day
Get a good night’s rest and don’t cram on the last day. It’s of course okay to study, but make sure you get a good nights rest. Relax and remember that whatever happens, you’re still going to be fine and that you did the best you can. Concentrate on reading the questions closely, especially things like ‘which is least likely’ vs. ‘which is most likely’. Don’t spend too much time on a question. If you don’t know, leave it for later and come back to it if you have time. Also, don’t leave any blanks (make sure you have time left to at least randomly fill in ones you don’t know).

With just under a month left, there is still plenty of time to fix whatever you’re dong wrong, if anything. I’d give the same advice to anyone who is taking an exam like the Series 7, 63, etc. etc. because the type of testing (memorize / forget type) is similar. I’ve passed all kinds of these exams, though my accomplishments don’t have anything to do with this advice, really.
Thanks for reading and best of luck to everyone. Please leave some feedback. I’d particularly appreciate anyone who can pick at my ideas or help me improve them.
 
Quote:Start High Level and Gradually Get Deeper in Detail
-If you tested people who took the exam 2-3 years ago without giving them the opportunity to study again, I’d expect them to do very poorly. I’ve largely noticed from intelligent peers that the retention rate of this material is very poor. Just look at how we take ethics three times and most people (including myself) have to prepare each time for it. So, remember, don’t memorize stuff too early. I think the right way is to start with general concepts and then get more and more into details as the test nears. Memorize terms, equations when the test comes up nearer, but work to understand big picture concepts very early in the process. My wife is just painting a beautiful landscape, and she also has a similar process. She fills in the outline, then the colors and then the details. Our preparation is analogous, in my opinion.
Do Lots of Questions
-You can sit there and read the hundreds of pages of material for many hours, and then you’ll probably notice that it is still very difficult to bring yourself to know a lot of the answers to the questions. Answering the questions is when you really test yourself. Start relatively early.
Learn from the Questions and Take Notes
-This is a key way to learn. You’ll learn the big picture material earlier in the process, and as you take questions, they will force you to learn more detail. Keep a log of all the questions you get wrong, and look up the answers in the text. Read more than just the relevant material to your question, and take it as an opportunity to brush up on that topic. Do this a lot and don’t worry about your scores until you get closer. The idea is to build your idea base, not to pass the practice test. Don’t give yourself credit for getting an answer right unless you got it right due to knowing the information (vs. a random or educated guess). Those count as incorrect answers when you practice.
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I think this is the most important part.
 
rawraw wrote:
Quote:Start High Level and Gradually Get Deeper in Detail
-If you tested people who took the exam 2-3 years ago without giving them the opportunity to study again, I’d expect them to do very poorly. I’ve largely noticed from intelligent peers that the retention rate of this material is very poor. Just look at how we take ethics three times and most people (including myself) have to prepare each time for it. So, remember, don’t memorize stuff too early. I think the right way is to start with general concepts and then get more and more into details as the test nears. Memorize terms, equations when the test comes up nearer, but work to understand big picture concepts very early in the process. My wife is just painting a beautiful landscape, and she also has a similar process. She fills in the outline, then the colors and then the details. Our preparation is analogous, in my opinion.
Do Lots of Questions
-You can sit there and read the hundreds of pages of material for many hours, and then you’ll probably notice that it is still very difficult to bring yourself to know a lot of the answers to the questions. Answering the questions is when you really test yourself. Start relatively early.
Learn from the Questions and Take Notes
-This is a key way to learn. You’ll learn the big picture material earlier in the process, and as you take questions, they will force you to learn more detail. Keep a log of all the questions you get wrong, and look up the answers in the text. Read more than just the relevant material to your question, and take it as an opportunity to brush up on that topic. Do this a lot and don’t worry about your scores until you get closer. The idea is to build your idea base, not to pass the practice test. Don’t give yourself credit for getting an answer right unless you got it right due to knowing the information (vs. a random or educated guess). Those count as incorrect answers when you practice.
Click to expand...
I think this is the most important part.
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thanks for the feedback!
 
+1 on rawraw’s post.
I would add to this, as you go along, make formula sheets with the name of the formula and then blank spaces. Cycle through periodically, as the list grows longer, writing as much as you know until you can recall all of the key formulas for each study session. I never understood how people without photographic memories believe that they will somehow retain key formulas and pull them out of their @$$ on exam day without forcing themselves to do formula drills – this is especially key for those formulas which tend to not be tested too much in the practice question databanks.
Keep the formula sheet as a Word file and print out a fresh blank one when you want to test yourself.
I would rate the formula sheet concept I described as only a hair behind the notion of doing practice problems over and over again in terms of importance for having complete retention on exam day.
 
To the OP you listen. Wise is he about the ways of the test.
I have taken (and passed) the Series 7, 63, 65, 31, the Texas Life/Health Insurance exam, the CRPC exam, all four parts of the CPA exam, and Leves 1 and 2 of the CFA exam. And while some of these are certainly harder than others, the art of studying for them are all the same.
The OP’s advice to do many questions is the key to every professional exam you’ll ever take. But don’t just answer the questions–read the explanation, especially if you got it wrong. Answering questions without learning from them is useless.
I think another point that the OP makes that is almost as important, is Stop planning and start doing!!! Too many people (me included) spend a lot of time making schedules, thinking about the best way to study, deciding what order you’ll study in, how many pages per day, etc. Planning is good, but at some point you just have to dive in and start studying. Like they say, “Thinking about going to the gym burns exactly zero calories.”
 
Greenman72 wrote:
To the OP you listen. Wise is he about the ways of the test.
I have taken (and passed) the Series 7, 63, 65, 31, the Texas Life/Health Insurance exam, the CRPC exam, all four parts of the CPA exam, and Leves 1 and 2 of the CFA exam. And while some of these are certainly harder than others, the art of studying for them are all the same.
The OP’s advice to do many questions is the key to every professional exam you’ll ever take. But don’t just answer the questions–read the explanation, especially if you got it wrong. Answering questions without learning from them is useless.
I think another point that the OP makes that is almost as important, is Stop planning and start doing!!! Too many people (me included) spend a lot of time making schedules, thinking about the best way to study, deciding what order you’ll study in, how many pages per day, etc. Planning is good, but at some point you just have to dive in and start studying. Like they say, “Thinking about going to the gym burns exactly zero calories.”
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well said
 
I only agree with a selective part of your methodology.
I’ll rank your advice:
#1: Master the stuff you suck at: Ya, this is your best piece of advice. Nothing better than tackling what you are terrible at and make it your strength.
#2: Stop talking and start doing: Studying works, not talking about studying. Agreed.
#3: Preparation: If you haven’t figured out how to write a test by now, well, shrug. That might help someone taking an SAT, not a test like this.
#4: Questions and prep exams: Only applicable if you care about passing the test and not actually knowing the material. On an SAT with little applicability to a job? Fine. If it is your profession? Sorta sad. I refuse to take mock exams.
Note on response four: If you are on the borderline of passing, fine. I get it, passing is better than failing. But studying the test rather than the material is really sad.
 
CareerChangeCA wrote:
#3: Preparation: If you haven’t figured out how to write a test by now, well, shrug. That might help someone taking an SAT, not a test like this.
#4: Questions and prep exams: Only applicable if you care about passing the test and not actually knowing the material. On an SAT with little applicability to a job? Fine. If it is your profession? Sorta sad. I refuse to take mock exams.
Note on response four: If you are on the borderline of passing, fine. I get it, passing is better than failing. But studying the test rather than the material is really sad.
Click to expand...
I think that if you’re going to opine on how to take this test, you should at least have some credible experience. Ever taken the Series 7? 63? CFA exam? Any other exam? By what right do you tell us that our advice is wrong? If you passed the CPA, CFA, ASA, and JD, then I would love to hear your opinion.
#3 - “If you haven’t figured out how to write a test y now, well, shrug.” Sometimes it takes a little time to figure out your study habits. You have to learn the best way to study for you. At the office or library or home? Do you read books or read PDF’s on your laptop? Do you buy flash cards, make flash cards, or not do flash cards at all? Do you watch videos? Do you do practice questions now or later? It takes some time to really get a good study routine going.
#4 - “I refuse to take mock exams.” Okey doke. I’m sure you’ll be the one out of twelve who will finish the program.
“Only applicable if you care about passing the test.” Yes–I care about passing the test. That’s why I signed up to take the test–I want to pass it. I can gain knowledge without taking the test. I can never be a CFA Charterholder unless I pass the test.
To all those who actually want to pass the test–your goal is to pass the test, through whatever (honest) means necessary. And the best way to learn CFA exam material is to take CFA practice exams. Study for the test–there’s time to learn your job later.
You’ll get plenty of training at work. You don’t need to learn Kantian Ethics or memorize Sarbanes Oxley rules for independence for a Board of Directors to do fixed income analysis. They would have little relevance to your job. However, you do need to learn it to pass the CFA exam.
 
Greenman72 wrote:
CareerChangeCA wrote:
#3: Preparation: If you haven’t figured out how to write a test by now, well, shrug. That might help someone taking an SAT, not a test like this.
#4: Questions and prep exams: Only applicable if you care about passing the test and not actually knowing the material. On an SAT with little applicability to a job? Fine. If it is your profession? Sorta sad. I refuse to take mock exams.
Note on response four: If you are on the borderline of passing, fine. I get it, passing is better than failing. But studying the test rather than the material is really sad.
Click to expand...
I think that if you’re going to opine on how to take this test, you should at least have some credible experience. Ever taken the Series 7? 63? CFA exam? Any other exam? By what right do you tell us that our advice is wrong? If you passed the CPA, CFA, ASA, and JD, then I would love to hear your opinion.
#3 - “If you haven’t figured out how to write a test y now, well, shrug.” Sometimes it takes a little time to figure out your study habits. You have to learn the best way to study for you. At the office or library or home? Do you read books or read PDF’s on your laptop? Do you buy flash cards, make flash cards, or not do flash cards at all? Do you watch videos? Do you do practice questions now or later? It takes some time to really get a good study routine going.
#4 - “I refuse to take mock exams.” Okey doke. I’m sure you’ll be the one out of twelve who will finish the program.
“Only applicable if you care about passing the test.” Yes–I care about passing the test. That’s why I signed up to take the test–I want to pass it. I can gain knowledge without taking the test. I can never be a CFA Charterholder unless I pass the test.
To all those who actually want to pass the test–your goal is to pass the test, through whatever (honest) means necessary. And the best way to learn CFA exam material is to take CFA practice exams. Study for the test–there’s time to learn your job later.
You’ll get plenty of training at work. You don’t need to learn Kantian Ethics or memorize Sarbanes Oxley rules for independence for a Board of Directors to do fixed income analysis. They would have little relevance to your job. However, you do need to learn it to pass the CFA exam.
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Someone posted advice. I commented on it. I agreed with most of it.
You commented on my “intro” post enough: I would have assumed you remembered that I am moving from law practice. There is your credible experience.
With respect to study habits, would I be wrong in assuming that most people trying to get a CFA at least have a Bachelor’s degree? I mean, how many years of post-secondary do you need before you get some practice studying for exams lol.
With the exception of the LSAT, where getting in the top 1% actually had some meaning, why take a mock exam? I guess you are worrying about passing. I was trying to explain a method of learning material which takes the stress out of trying to “just pass”.
I guess we just value the material differently. Maybe there should be separate threads: those who want/need the CFA for their job or those who want to demonstrate competence in vocational knowledge.
But come on: videos, flashcards? Sounds like how I’d teach an 8 year old math or history. Although I recognize that people use flashcards: when I was taking the CSC exam there were these 2 nerdy BCom types frantically cramming as much short-term regurg into their heads with this near manic stack of insanely bright Leapfrog-esque cards.
 
CareerChangeCA - Here is my rebutt to your statements for those that are reading
- You work practice problems because they are far more engaging, and provide a focal point in the curriculum. Once you have done them you began to memorize not just “what” but also “why”, and begin to know how to audit your own memorization of the formulas. Blind memorization is very difficult in an exam where you beginning to forget things almost as fast as you are learning them.
- A second reason you work practice exams is to adapt to the communication style of the Exam, so that your understanding is efficiently demonstrated and there are no translation errors from your brain to CFAI. It is also to understand and avoid the many technical traps that fill the exam.
- As far as something relevant to work, most of us will work in some section of Financial Services that is covered by a fraction of the material. Just as you may need to learn criminal defense, it might not be relevant to your current workload, and you don’t need to memorize every criminal case in existence. It is nice to have it in the back of your brain, and know where to look it up if you need to, but you don’t need to know everything at all times.
 
Greenman72 wrote:
CareerChangeCA wrote:
#3: Preparation: If you haven’t figured out how to write a test by now, well, shrug. That might help someone taking an SAT, not a test like this.
#4: Questions and prep exams: Only applicable if you care about passing the test and not actually knowing the material. On an SAT with little applicability to a job? Fine. If it is your profession? Sorta sad. I refuse to take mock exams.
Note on response four: If you are on the borderline of passing, fine. I get it, passing is better than failing. But studying the test rather than the material is really sad.
Click to expand...
I think that if you’re going to opine on how to take this test, you should at least have some credible experience. Ever taken the Series 7? 63? CFA exam? Any other exam? By what right do you tell us that our advice is wrong? If you passed the CPA, CFA, ASA, and JD, then I would love to hear your opinion.
#3 - “If you haven’t figured out how to write a test y now, well, shrug.” Sometimes it takes a little time to figure out your study habits. You have to learn the best way to study for you. At the office or library or home? Do you read books or read PDF’s on your laptop? Do you buy flash cards, make flash cards, or not do flash cards at all? Do you watch videos? Do you do practice questions now or later? It takes some time to really get a good study routine going.
#4 - “I refuse to take mock exams.” Okey doke. I’m sure you’ll be the one out of twelve who will finish the program.
“Only applicable if you care about passing the test.” Yes–I care about passing the test. That’s why I signed up to take the test–I want to pass it. I can gain knowledge without taking the test. I can never be a CFA Charterholder unless I pass the test.
To all those who actually want to pass the test–your goal is to pass the test, through whatever (honest) means necessary. And the best way to learn CFA exam material is to take CFA practice exams. Study for the test–there’s time to learn your job later.
You’ll get plenty of training at work. You don’t need to learn Kantian Ethics or memorize Sarbanes Oxley rules for independence for a Board of Directors to do fixed income analysis. They would have little relevance to your job. However, you do need to learn it to pass the CFA exam.
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yeah i think the important difference between your post and that other guy’s post is self awareness and the idea of thinking of your actions critically vs. the natural desire to be judgmental - its going to really help when you need to figure out problems or how to improve a situation that you’re in (not just this exam)
id say to the other guy - okay, if you are taking this exam to know the material well and not pass, then, well, you should restest yourself on the material every six months, and if you ever don’t pass, then you didn’t succeed and you should voluntarily give up your charter - otherwise its ‘kinda sad’ - perhaps we can start another thread about that
for the rest of us, i keep a lower bar - very smart guys i know have low retention rates with this exam - if you want to actually know the material, as you say, the workplace is where to learn, although this exam is also helpful
also, i want to help guys that other people shrug at - i think its easy for anyone to develop and improve, if they are given a chance to learn how to be self aware and self confident based on work ethic - that is kind of the point
thanks for the feedback though, this is helpful and i hope for more
 
CareerChangeCA wrote:
You commented on my “intro” post enough: I would have assumed you remembered that I am moving from law practice. There is your credible experience.
With respect to study habits, would I be wrong in assuming that most people trying to get a CFA at least have a Bachelor’s degree? I mean, how many years of post-secondary do you need before you get some practice studying for exams lol.
With the exception of the LSAT, where getting in the top 1% actually had some meaning, why take a mock exam? I guess you are worrying about passing. I was trying to explain a method of learning material which takes the stress out of trying to “just pass”.
I guess we just value the material differently. Maybe there should be separate threads: those who want/need the CFA for their job or those who want to demonstrate competence in vocational knowledge.
But come on: videos, flashcards? Sounds like how I’d teach an 8 year old math or history. Although I recognize that people use flashcards: when I was taking the CSC exam there were these 2 nerdy BCom types frantically cramming as much short-term regurg into their heads with this near manic stack of insanely bright Leapfrog-esque cards.
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Ah! I forgot that you were moving from law into finance. That changes my opinion about your post. I assumed (wrongly) that you were a 21-year old senior at Local State who assumed that he was going to breeze through the CFA exam with only a week of study. You know the type–even though he’s never passed a standardized test or even studied for one, he feels qualified to opine about it. Now I know that this is not the case.
Nonetheless, my points are still valid. There’s a big difference between studying for your chemistry final and studying for CFA. With one, you can cram the day before the exam for 5-6 hours. The other takes 6-8 months, and you have to study for 300-ish hours. One covers six chapters (out of twenty) in a textbook. The other covers six textbooks.
Plus, people’s lives change between college and CFA. When you’re studying for your chemistry final, you’re a student and you have a library at your disposal, and probably a study group. Also, you’ve been forced to attend class three times per week for the past four months. So you go to class from 1:00 to 2:00, study with your classmates from 2:00 to 6:00. You can get all your studying done by 6:00 and still go out and party with all of your single friends at the bar.
If you’re a CFA candidate, it’s likely that you’re working for the state’s pension plan, sit alone in an office for 8-10 hours a day. Then, after your day is over and you’re tired and hungry and want to go home and watch the NBA playoffs and play with your 20-month old daughter, you realize that the exam is only three weeks away and you’re still not comfortable with where you’re at in your exam process. So you have to find a place to study (different from college) and a method of study (because the Black-Scholes option pricing model is not something you think about every day). As you can see–these situations are totally different.
You said “Why take a mock exam?” Someone else has already described very succintly why mock exams and practice questions are crucial to your learning. And comparing CFA with LSAT is a bad comparison. LSAT determines who goes to what school and with what benefit package–it pays to score in the top 1%. With CFA, you either pass or you fail. You will never know your grade or how you compared with the rest of the field (unless you fail, of course).
Nobody “needs” the CFA Charter to do their job. It is not like the JD or CPA. There is no job that “must” get the CFA charter for, as if it were a legal requirement. It’s there simply to demostrate competence. (I think I told you that in the other thread. You’re a lawyer–you’ve already established competence.) I, for one, would trade my CFA charter (when I get it) for a Harvard MBA any time. (If there are any Harvard MBA’s who would be willing to make such a trade, let me know.)
Videos? Flashcards? I have watched many videos, and they have helped. I personally don’t do the flashcard thing, but a lot of people do. Different people learn differently. And I wouldn’t knock any learning method that helps someone else learn. Because at the end of the day, they’ll either pass or they won’t. And if they pass by using flascards, but you scoff at flashcards and fail, then who gets the last laugh? The end will justify the means.
 
TLDR version:
CareerChangeCA isn’t a punk wannabe who’s never taken a test. He’s a lawyer. That changes my opinion of him.
Studying for CFA exams is quite a bit more involved than studying for a Chemistry Final. You have to change your study habits when you start CFA.
You still have to answer practice questions/mock exams if you want to pass CFA. If you don’t, you will not pass–period. And the only reason to take the test is to pass it.
Comparing LSAT with CFA is dumb. LSAT gives you a grade which determines your fate in life. CFA gives you P or F, and nobody knows or cares what you scored, as long as you get a P.
Flashcards and videos work for some, but not for others. If it’s stupid but it works, it’s not really that stupid.
 
Greenman72 wrote:
TLDR version:
CareerChangeCA isn’t a punk wannabe who’s never taken a test. He’s a lawyer. That changes my opinion of him.
Studying for CFA exams is quite a bit more involved than studying for a Chemistry Final. You have to change your study habits when you start CFA.
You still have to answer practice questions/mock exams if you want to pass CFA. If you don’t, you will not pass–period. And the only reason to take the test is to pass it.
Comparing LSAT with CFA is dumb. LSAT gives you a grade which determines your fate in life. CFA gives you P or F, and nobody knows or cares what you scored, as long as you get a P.
Flashcards and videos work for some, but not for others. If it’s stupid but it works, it’s not really that stupid.
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Awesome.. good work man
 
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