Preparation

How to Pass the CFA Exam

Since the CFA Level 1 results were just released, a lot of people who passed L! are now worried about passing Level 2 in less than 20 weeks of study time. It will undoubtedly be difficult. However, there are several steps you may do to improve your chances of passing.

Analyst Forum is one of the top sites available. It's a community of people who are studying for (or have previously passed) the various CFA levels via the internet. I read it on a regular basis, and you should as well - it's fantastic.

One poster (BBD) recently provided his study plan for passing the exam in a short amount of time. I've included a copy of it below. I'd also like to point out that (while the poster suggested the Schweser study notes, Stalla also provides useful material):
During my three years of studying for the CFA, I learned a lot from this forum. We started CFA together as a group of ten people, and three of us completed it 3/3; the other four did not. I thought I'd share some thoughts that might be useful to others.

The enormous number of contents is the primary challenge in CFA. The topic matter isn't overly complicated in most cases (except one or two areas like Derivatives or Bonds). If some people find the intricacy too much, they should a) give themselves additional time to study and b) reevaluate their motivations for studying CFA. The biggest challenge for most people with a financial background will be volume rather than sophistication.

I recommend the following steps to overcome the volume challenge, keeping in mind that there are only 50 days left. These steps can be used at any level. I've included several anecdotes in brackets:

1.Focus on the fundamentals - this accounts for around half of the book's content. This is also the easiest mark that you can't afford to miss. The steps below will show you how to do it.

2. Obtain Schweser VCDs. A SS can be covered in 2–4-hour sessions. The lectures provide an excellent overview of the key themes. As you listen to the CD, jot down the major points on a notepad. [I discovered that listening to something rather than reading a great amount of information made it easier for me to grasp new concepts.] It also helped me remember things. [I purchased my kit secondhand from a buddy who also did CFA 3/3 and strongly recommended it.]

3.After that, go over the Schweser Secret Sauce. This is a shortened version of all of the notes, with approximately 200 pages. It's quick and simple to do after watching the DVDs. In general, you could finish SS in 1-2 hours. [Keep the Secret Sauce notes with you at all times. These should be read frequently. These are the fundamentals, and you must master them. I read these on my way to work, at breakfast, and everywhere else, and I learned everything there was to know about it.]

4.Go for the kill by attacking all of the questions on the SS. All of the former exam questions must be included. Don't limit your responses to a few questions. You must answer all of the questions that you can. Rehearse, rehearse, rehearse. You won't be able to answer some questions because you don't know enough about the SS. Don't be concerned. Step 5 is outlined below.

5.Refer to the Schweser notes if you don't know the solution to a question. Scrutinize the entire set of notes; you'll be familiar with the most of it after covering the Secret Sauce and VCD; then concentrate on the areas that you find difficult or unfamiliar.

6.You can cover an SS in 8 hours if you spend 2 hours on the DVD, 2 hours on the Secret Sauce, 4 hours on questions, and 2 hours on weak areas. You might easily complete an SS in two days, depending on your time constraints. That was about the average for me. The 18 SS took +/- 36 days to complete, with the remaining days being used for modification.

7.Revision is the only way to master volume. Don't attempt to learn an SS completely the first time around. It's good if you get 70-80% of the answers right the first time. The second time around, you'll learn an additional 10-20%, which should be enough to pass the exam.

8.Effective time management is essential. Keep track of how much time you spend on each SS. Don't spend too much time on one SS at the expense of another. There are easy marks available in all SS. [ I understand that it is easier said than done. I, too, spent far more time studying derivatives than I anticipated, but that is partly due to my enthusiasm for the subject].

9.Remember to take a rest. Allow your mind to unwind. A stressed mind produces numerous errors. That is, leave some time to rest and do something else, like I mentioned 50 days ago.

The importance of D-Day cannot be overstated. Exam day stress management, in my opinion, is one of the most critical variables in passing or failing. On exam day, keep a calm demeanor. I recall making a few foolish mistakes in the morning period of my L3 exam. I had a lot of friends who were taking the same exam as me, so we ended up asking each other how it went during the break. When the errors became apparent, I left their company and drove to my car, where I remained with the air conditioner on until the break was over. This allowed me to unwind, and I had a pleasant afternoon session as a result.

There isn't enough time to debate which notes to take or whether or not to consult the textbooks. Now is the time to just do it - pretend you're driving at 120 mph and concentrate completely.