Today (27 July 2013) we are exactly 19 weeks away from the next level 1 CFA® exam. If you have signed up for the test already you may be deliberating whether or not you should get started on your studies or if you should postpone it a little longer.
The 6 books in front of you (or wherever you keep them) cover 10 different topics. These topics are further broken down into 18 different study sessions, further subdivided into 67 readings. The readings contain 579 Learning Outcome Statements that you will need to master (at least most of them) by answering the 1396 end of chapter questions multiple times as you read through the roughly 3200 pages worth of content.
When framed this way, it should be pretty clear, that now is just about the right time to get into the swing of things, if you want to have a realistic chance of mastering the material in time for the exam.
So if you are convinced to get started, where should you start your efforts?
As a first step I would suggest you get hold of the following items (these are going to be crucial while preparing for the level 1 CFA® exam):
You obviously need to get hold of the curriculum (if you haven’t already), and any potential abbreviated study notes that you may have decided to use. The use of abbreviated study notes is by no means a must.
You will need a calculator. The options are as follows for the December 2013 test (most candidate seem to prefer the option from Texas Instruments).
- Texas Instruments BA II Plus (including BA II Plus Professional)
- Hewlett Packard 12C (including the HP 12C Platinum, 12C Platinum 25th anniversary edition, 12C 30th anniversary edition, and HP 12C Prestige)
You will need a large stack of empty flash cards. You are going to be filling out hundreds if not thousands of them over the next 19 weeks.
A good place to start in the curriculum would be having a closer look at Ethics. You can read more about why Ethics is worth prioritizing in this piece, but suffice it to say:
- Ethics makes up a disproportionate part of the test score (15%), compared to how short the curriculum readings are (roughly 7.5% of the total curriculum).
- If you are a borderline pass, a solid Ethics score may convince the CFA Institute to let you through.
If you are sold on prioritizing Ethics first. What is the strategy to attack this topic?
Reading 2, is by far the meatiest of the 4 Ethics readings. I would by no means ignore the other 3 readings, but the fact that this reading is the only reading in this topic area with a meaningful amount of end of chapter questions (40), likely indicates that the CFA Institute considers this highly testable material.
My suggested plan of attack is as follows:
1. Write down the 3 LOS related to reading 1 on 3 of your newly acquired flash cards, and as you skim through the short reading (14 pages) seek out the answers to the LOS questions posed and make sure to write the answers down at the flipside of each card (also make a note of the book and page number at the flipside of the card). Store all of the flashcards that you produce away, they are going to be vital later when you are revising for the exam.
2. Before you start Reading 2, go through the 40 end of chapter questions answering them to the best of your best ability (This should take about 1 hour if you answer them in the same speed that you need for the exam). As you answer the questions make a list of the questions that you find particularly puzzling (especially whenever you resort to guessing). Review your answers thoroughly (particularly those that you got wrong) and add these questions to your list of “puzzling questions”. You will now have a customized list of the hardest questions in the reading seen from your perspective. This list will likewise serve as a useful tool later in the revision process.
3. You will notice that reading 2 is really subdivided into 7 sub-chapters covering the 7 individual standards of professional conduct (these are further subdivided into sub-standards). Write down the 7 flash cards with each LOS as they related to each individual standard, and as you progress through reading each of the 7 standards seek out the answers to the LOS questions posed as best you can and make sure to write the answers down on the flip side of each flashcard (with the book and page number). Also make sure that you pay attention to the many examples provided in the reading. Depending on your reading style you may be flicking through the pages at times. But please ensure that you read all of the examples carefully. These are very useful in preparing for the test.
4. Once you are done with this reading, redo only the “tricky” end of chapter questions from your list. Remove those answers that you can now confidently answer correctly, and if there are any left read the explanations thoroughly before you redo. Continue this process until you have mastered all of the end of chapter questions in the reading. This process will ensure that you are focusing your efforts on your weaknesses and pushing yourself just that little bit harder than the average competing candidate (without wasting time). Remember the pass rate was just 37% in December (2012), so you want to make sure you are not one of the app. 63% receiving a “better luck next time” email in January…
5. Now finally use the same approach while working your way through the final 2 readings in the topic. Reading 3 is just 4 short pages and reading 4 contains a lot of optional segments. We are going to apply the same study approach throughout the curriculum, so you may as well get used to it straight from the start. It can feel a little bit cumbersome at first, but it ensures that your brain stays alert looking for answers to the questions and LOS statements as you progress through the curriculum. Once you are through Ethics pat yourself on the back. You have now got a solid grasp on the most important 15% of the exam, not a bad start!
Good luck with your studies.