Hi, in this post we will talk about some tips and tricks to ace the CFA exam. Please remember these tips are being provided by someone who is a full time working professional and comes from a non-finance background. So, if you do come from finance background, or if you are a student or a part time working professional, these tips will be even more effective.
Right, so, let’s talk a little bit about the CFA exam. Everyone knows that CFA exams are tough, no questions about that. They are intense; require a lot of preparation and determination. You have to understand a lot of concepts, and then be able to apply them in a time-constrained environment. Sounds fun, right!!
Now, I am sure you are aware that the CFA exams consist of 3 levels, Level I, II and III, each of which is a 6 hour exam (that is two 3 hour sittings). You must also be aware that Level I exam is offered twice, while Level II and III are offered only once every year.
There is no doubt that you have to work hard, but what this video aims for is to suggest ways for you to work smart. So, here are some myth busters first:-
1.) You need about 250-350 hrs. of preparation à This is my favorite myth. There is no magic number of hours. People have cracked CFA exam with just 2 months of intense preparation, and there are candidates who have failed these exams after preparing for years.
It’s about the quality of time you put in, not the quantity.You need to be able to self-analyze and adapt while you are preparing for the exam.
2.) You should focus just on the problems and practice a lot of themàNo, you shouldn’t! CFA is not just any exam; it is THE exam to prove your worth in the financial world. The CFA curriculum prepares you for the challenges in the world of investment and global finance. This is an investment in your career, so please understand the concepts, be able to reason your approach. Plus, it is much easier to ace the exam if you understand the concept, rather than just mugging up a few tricks to solve a specific set of question.
3.) Focus on the topics that have the highest weightage and complete them firstà In my opinion, the CFA curriculum is designed so that there is a logical flow of ideas and concepts from one study session to another. I strongly recommend following the order of the study sessions in the curriculum. Yes, you can complete Ethics at the very end, but for rest of the topics, please follow the order of the curriculum.
And again, these materials are preparing you for your future career. Do not skip or underestimate any topic. There is a reason why CFA institute gives you a description of how you performed in each topic area, rather than just PASS/FAIL result.
4.) You can pass the exam by just using XYZ prep provideràCFA curriculum is the most extensive material that you can use to prepare for the exam. There is no shortcut to success. Candidates may have cleared the CFA exam by just using a specific prep provider, but this is a gamble. Are you willing to bet months of your preparation on this? Also remember that what you study in Level I will be used in Level II and III. Similarly what you study in Level II will also be used in Level III. If you use shortcut in the initial level, chances are it will come to haunt you later on.
5.) CFA candidates do not have a social circle or a lifeàCFA is not a sprint, it’s a marathon. To be successful in this race you will need to have a balanced life style. Make a time table, set yourself targets, but do not forget to relax your brain from time to time. Go out with friends, watch a movie: recharge your brain because it will need it. Always remember it’s the quality of time that is important rather than the quantity.
Now that we have discussed some of the popular myths, it’s time to discuss my 12 basic tips to ace the CFA exams:-
1. Start early: I cannot stress this enough. The sooner you enroll in the program and start preparing, the better it will be.
2. Analyze the curriculum before you make a plan: Read the study sessions. It’s ok if nothing makes sense. You are only trying to analyze how easy or difficult each topic is. Take notes about your familiarity with any topic.
3. Develop a Study Plan: Once you have analyzed the curriculum, develop a study plan. Break the curriculum into manageable chunks. Do not write finish Study Session X in 3 weeks. Break it into daily tasks. Have a target set for each day.
4. Be organized while studying: Make notes about concepts that were difficult. Write down formulas in a A3 size paper and keep it in front of your place of study. Note the questions you couldn’t solve on your own. Analyze the mistakes you made and the reason for the same.
5. One day per week for revision: I strongly recommend keeping one day in the week free. You can use this day to catch up with whatever you missed during the week as well as revise everything you have studied in that week. Plus, if you complete all your tasks early, you can go out or watch a movie. This acts as positive reinforcement and breaks the continuous cycle of pressure study.
6. Stay true to your goal: CFA is a long battle: everyone feels frustrated at some time or other. You have to stay patient and focus on the bigger goal. If you get stuck, work your way out of it.
7. Use the buddy system: If you have any friend who is also preparing for exam, prepare together. Join WhatsApp group for CFA candidates, become a member of LinkedIn group for CFA candidates. Use all the help you can get.
8. Use Notes/Flash cards: Make flash cards with your notes. Whenever you have some free time, read through your notes or flash cards, like when you are waiting in queue somewhere.
9. Don’t be afraid to modify your schedule: No matter how good a planner you are, there will be topics that will take more time than you initially planned. Do not be afraid to adapt and modify your schedule.
10. Aim to finish the syllabus 2 months before the exam: Aim to finish the entire syllabus 2 months before the exam. This means completing the entire syllabus cover to cover, no excuses.
11. Take Mock tests and analyze your performance: In the 2nd last month, take the topic wise mock tests and analyze each one of your responses. Highlight areas of improvement. Revise the entire syllabus with strong focus on areas of improvement. Take practice tests in the last month before the exam and analyze your performance.
12. Day before the exam: As far as possible, do not try to solve any problem a day before the exam. If you are not able to solve any problem, it will stress you. Have a light dinner and a good night’s sleep. Trust your preparation and trust yourself. Don’t forget to have all the items ready that you will be taking to the exam: Calculator, extra batteries, pencils, pens, erasers, passport, exam ticket, spectacles (if you use them), etc.
“If you can dream it, you can do it”. All The BEST.
You can watch a video explaining the points discussed in this blog here :-
For more CFA tips watch the posts in this blog. You will also find a number of CFA topics discussed on this blog in simple terms.
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