Hello everyone! I hope you’re doing well today. As a CFA Charterholder who passed 3 level several years ago, I was able to develop a strategy that worked well for me so I passed every level on my first attempt. . The journey was not easy but with persistence, hard work and the right approach, I was able to crack the exam.
I believe that self-study can be just as effective as going to a coaching center, as long as you’re committed to putting in the hours. In my case, I studied for around 350 hours and relied on the support of two of my friends who were also taking the exam.
In this blog post, I’ll be discussing my strategy for cracking the CFA exam and how I managed to achieve success. I’ll share the resources I used, my study schedule, and how I approached each of the topics covered in the syllabus. I hope that this will help you to gain a better understanding of the exam and give you the confidence you need to start preparing for your own journey.
So, buckle up, grab a cup of coffee, and let’s dive into how to crack the CFA exam!
The CFA exam is considered one of the most difficult exams and many people have had to retake it several times before finally passing. I want to share my experience of conquering Level 2 of the exam, however, this learning method helped me pass all 3 levels of the exam with “one shot” and without spending money or time to retake the exam. I hope I can help you with my own strategy and tactics.
A bit about the background: I studied international trade in college and then got an MBA in the US, so I have a slight advantage in reading and writing English over some of you. That’s just a little bit because I know young people are now very good. Why is English important and why am I mentioning it here? The reason is because you will have to understand financial and economic concepts in English, and then write answers in English under high-pressure conditions- for Level 2 and 3. If your English is not enough at some level, you are already at a disadvantage.
Level 1: multiple-choice questions
Level 2: case studies and multiple-choice questions
Level 3: case studies
I self-studied for all levels, not following any center. For Level 3, I studied at AFTS for a review phase because I was busy with work at that time, but the review part was quite small and I still consider myself to have self-studied, not relying on any teacher.
This article is shared by me in 2012, 9 years ago since I first learned the results of Level 2. Level 2 can be considered the hardest level among the three levels. I have kept the original feelings because I want to keep the memories of that day intact.
You can also listen to my direct share in the podcast below, in which I talk about my thoughts on the value of the CFA Charterholder for myself. Don’t forget to listen to other podcasts in the Podcast series and follow me!
Study Strategy to prepare CFA Level 2 and General Applications for All 3 Levels
Disclaimer: If you google for the experience of studying for CFA Level 1, you will find many related posts, but if you search for Level 2, you will find very few (as of this post).
Since I recently learned the results and still have fresh feelings about the learning process, I think it’s worth writing about my study approach, changes in my mindset, etc. I believe that if you apply the principles of persistence and discipline, you will pass. Of course, there are many people out there who passed without studying like I did, they may have passed with high marks, marginal pass studied on and off, studied 10 hours a day for a month, studied for 2-3 weeks. But let’s consider them superhumans. We are “average Joes“, so let’s follow the method of an “average Joe”.
Some notable differences between Level 1 and Level 2: There are analogies such as L1 is breeze, L2 is storm, or L1 is “an animal,” L2 is “a beast.” Overall, this analogy is partly true and you may have heard many people say that Level 2 is the hardest. In general, each level will have its own challenges. L1 is difficult in that you may not be familiar with the learning methods, new concepts, testing methods, and feelings in the exam room, and L1 is also very broad.
L2 is heavy on calculations and there is a lot to store in the CPU, and it goes very deep.
L3 I haven’t taken yet but according to CFA Charter holders, this part is also very easy to achieve because it’s an essay-style test. Anyway, that’s a different story. For Level 2, you should learn by combining the Curriculum and Notes because the chances of being asked deep questions and issues that haven’t been touched upon in the notes are very high.
- Learning materials: Each person will have different preferences but personally, I still stick with Schweser’s notes because it is concise but not too condensed, easy to understand and focused on the issues. However, at this level, there will be something different from Level 1, which is that you need to prepare mentally to study the Curriculum as well. Although I focus on studying the notes, I also use the AFTC center’s mindmap for ease of understanding and some summaries of the formulas found on the internet.
- Study time: According to the CFA recommends and the practical experience of many candidates who have passed, it takes an average of 250 hours to prepare for each level. This is not scientific because with such a large amount of study material, you have to remember “all at once” only on the exam day, your brain needs time to collide and absorb.
The Strategy revealed!
- Read the notes and take notes. I bought a real notebook and divided it into sections to study and record formulas, concepts I need to remember. Many others don’t need this, they just read the notes and that’s enough. For me, writing formulas by hand is more important than others because while writing, I understand and can remember the formulas better than just looking at them, they will quickly slip away.
- Spend the first three months reading the Notes in combination with the Curriculum, meaning if there are difficult parts, I should refer to the Curriculum to read. At the same time, answer the Concept Checkers (at this level I don’t see much point in this as the Level 2 format is Vignette, not short questions, so it requires different skills, but I still recommend it because it will help you apply the formulas immediately after learning). Remember, read actively. Take notes!
- After finishing Round 1, you may feel overwhelmed. During this time, I can take a quick break from books by writing flashcards. I have a set of about 100 flashcards that I wrote for the formulas and concepts that I consider important, and those that I don’t feel confident about, the relationships, and the impacts between different elements. When I have spare time, for example, when I go out, or during lunch, or before bed, I can take them out to review the concepts. Personally, I don’t use flashcards except for the last month, but they are very useful when my brain is tired from reading the whole book and I already have a basic understanding of many things.
- My target is to log at least 250 hours. However, when I started in January, my initial study time was quite limited, I tried to study 1 hour, 1 hour and a half, and 2 hours every day. Sometimes, I also chat and browse the web while studying, you know, it’s tempting for 5 more months. But after I passed Level 1, I realized that persistence matters (I have 8 subjects with scores over 70%, and the two lowest scores were within the range of 50-70%). If habits are not established now, it will be very difficult to establish them in the next few months. You tend to play after work, watch TV, read stories instead of studying. If you can arrange 1 hour in the afternoon and 1 hour in the evening, it’s even better because it will reduce fatigue and lighten the mind. I use an Excel sheet to log my study hours every day. This sheet is very detailed and careful because a friend on Analystforum shared it with everyone. If anyone needs it, I will upload the link. Actually, looking at that file admires your learning spirit, and makes me feel inspired to keep going. By the end of April, it seems that my study time is not too much, so I have to push myself to make up for lost time. For example, if I take a break for 1 hour today, I have to make up for it tomorrow, don’t think that just sitting down to study is enough. You can also count reading flashcards, or reviewing summaries, as studying time.
My overall 6 month preparation looks like this:
- Notes (2-3 months) -> Writing out Scheweser’s software questions on paper for each subject (but only completed 2 subjects and then stopped), then moved on to End of Chapter (EOC) questions (1 month)
- -> Started working on Schewser’s first mock exam (open book exam)
- -> While working and re-reading formulas, this is a very important time to turn passive knowledge into active knowledge
- -> Completed all 3 mock exams from Schewser, carefully reviewing and noting any mistakes to understand the “tricks” or gaps in knowledge (very essential). What you learn from your mistakes on exams will help you remember better and not repeat them again.
- -> Continued with 3 more mock exams from Schewser (started timing, but still allowed open book at times)
- -> Completed the CFAI official mock exams from 2009, 2010, and 2011 during the last 2 weeks at home (divided into one test per day), timed and no open book or notes.
- During this time, continually reviewed notes and curriculum to instantly “reinforce” any gaps in knowledge. Reviewed personal notes. Wrote out a formula sheet for all subjects, reviewing it instead of reading Scheweser’s summary sheet (as it’s not very comprehensive in general).
- I rarely used Schewer’s software, only on the final day before the exam, as it wasn’t very helpful (my impression after working on sample questions).
- Key TIPS to address the Vignettes:
- Reading vignettes, going through the first question, reading the case and spotting key figures/facts, then solving the problem.
- Information is usually given in order so you don’t have to worry too much. Just follow the sequence from top to bottom. Initially, doing mock exams may seem daunting and confusing, as every part seems new. What formula will this part use? Why is it asking that… those are normal feelings. Personally, I found it the most overwhelming when I started doing mock exams, I regret not starting earlier (but I was not confident enough to attempt mock exams before).
- Two weeks before the exam: You should take a break to focus completely on studying, as both studying and doing other things will be very distracting. Personally, I spent the last week in the library or at home, trying to push my brain’s capabilities to the highest. And as expected, near the time of being under stress, I felt I was studying very quickly and efficiently (every piece of the puzzle comes together). If there’s anything difficult, I post it on the Analystforum to ask other candidates. I learned a lot from their questions and also from helping them. Furthermore, by joining a community with similar concerns, worries, and difficulties as yours, you will feel… more confident because you realize you are learning more and better than others.
- HOW TO MOTIVATE YOURSELF? There is a myth I read from Level 1 that almost all the active members of analystforum pass. It sounds unrealistic, but it has substantially fact-based evidence. Those who frequent the forum and contribute opinions and answers to questions show that they are very serious and committed to the exam. Therefore, it makes sense that they pass. I am also an active member and I feel that I am very serious and disciplined about this exam more than some other candidates. Maybe it’s because I don’t like to waste time and don’t like a “marginal pass.” I always tell myself that I can take it easy on myself a little, learn a little less, and then I might have to spend 6 more months going through this process again next year. That’s what I fear the most. Right now, I have learned 8 or 9 sections, and others may have learned the same amount. But those 8 or 9 sections mean nothing if you don’t add 2 or 3 extra sections. And that incremental effort and time spent on the notes/mocks…do matter and can affect your result in an extremely opposite way. So if we have already tried 8 or 9 sections, then let’s try to finish them. That’s how I push myself to go further.
- While studying, there will be times when you feel very discouraged and want to throw all the books away. It’s normal, trust me. I was been there done that. You will ask yourself if this is worth it, whether you need to sacrifice so much time. The answer depends on you. When you have registered for the exam, and made the decision to take the exam, it means that you believe in what you are doing to some extent. It’s just a way that we try to “procrastinate” and justify if we fail. This is a very common mentality in people. My advice is that if possible, you can talk and share with CFA charterholders about the value they have gained and help you see the big picture more clearly. Or at least with Level 3 candidates because they have been there, done that, and experienced what you are going through. They will give you advice and positive encouragement as well as exam experiences.
Key takeaways of the Strategy
• Persistence and discipline. CFA is not something that requires an extremely high level of intelligence to crack. However, it is one of the rare exams that demand high levels of focus and persistence, as well as a large amount of information. Attitude and approach to learning are more important than IQ score.
• Repeat and review. Re-read notes at least TWICE. Don’t think that reading once will make you remember. You should read notes four times in five months, it will be more effective than reading once in three months (no matter how deep or understood), and a second round in two months. Understanding how the brain processes information will help you win. I remember a phrase from a friend like this: “I gotta do it again and again until I cannot bear the sight of it“. We don’t have much time to push it to that extreme, but you need to understand the material and how to collect data so that when you enter the exam room, you will feel confident when looking at a vignette, knowing immediately what section it is in, what formula is required. That’s the result of a process, not a day or two.
• Start learning ethics in Month 4: Ethics doesn’t necessarily need to be learned early, as there is a high chance you will forget and lose the feeling. The time spent learning ethics should be better spent on Equity + FRA, as the incremental performance thanks to incremental time spent on these two subjects is way higher than Ethics. Be smart in spending your time!
My personal story
After learning and understanding, I feel very confident and happy. Ignoring the tiredness and stress, I feel that self-learning is a source of joy when we understand more and more about financial investment practices. Knowledge will be yours, and will follow you your whole life. So, stop hesitating and wasting “6 months of life…”. You are still young and full of energy, so this is the best time to learn. Don’t waste it. The sweet fruit is waiting for you at the end of the road.
😉 On the test day, both in the morning and afternoon, I finished the exam 45 minutes early, which means I felt relatively comfortable and went back to check the questions I was not sure about or would take more than 5 minutes to solve. I went back to round 2 and found some mistakes, and some questions I thought of a different solution at that time. When you finish before time, you are less likely to screw up and make mistakes. Timing is key! Make sure when you do mock exams at home, you can spare 10 minutes. Leaving the exam room, I felt very relaxed. I was fairly satisfied with my pace and performance. I am confident that I have a 70% chance of passing. 30% was because the exam was too difficult and the questions were too tricky. I got 8 subjects above 70% (I am not surprised), but Ethics was below 50%. Ethics is a part where no matter how much you study, you can never be 100% sure of the answer, so I don’t worry about it too much anymore. Quant is the lowest weighting part. I can’t remember if I got it right or wrong, but overall I am still very happy.
P/S: In case you wonder, My total preparation hours are around 350 hours.
P/SS: As a self-taught CFA candidate, I can attest that it is entirely possible to pass the exam without attending a formal training center. In my case, I put in around 350 hours of study time and relied heavily on the support and guidance of two of my friends, a CFA and a Level 3 candidate, to reach my goals. The key takeaway of my study strategy is that a combination of self-motivation, dedicated study time, and support from peers can lead to success on the CFA exam. While attending a training center may be beneficial for some individuals, it is not the only path to passing the test.
Wishing you all the best in next year’s exam. I hope my sharing can help you. Good luck!
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