Last week hopefully provided a little bit of a breather, this week we are going to step it up again. I do realize that it is extremely difficult to keep up the enthusiasm week after week as you press through this program. In many ways the psychology needed to finish the CFA® program is similar to that of a marathon runner. Whether you have ever attempted a marathon or not, you can imagine that it is a pretty uncomfortable experience as you are in the midst of it. The brain is constantly looking for a way out, and there are always plenty of good reason to stop running.
The best running advice that I have ever received (that applies equally well to studying for the CFA® program ) is to focus your mind on running to the next lamp post and nothing else. If you start dwelling on how many miles/kilometers you have yet to run, the task will seem insurmountable, but pretty much no matter how exhausted you are, you can probably get yourself past the next lamp post through will power, and then the next one and before you know it you are half way through the race.
In a similar fashion when studying for the CFA® program, if all you focus on is generating genuine curiosity about the answers to the current LOS that you are searching for, or how to answer an end of chapter question, and make this your entire focus, then you will get lost in time, and soon enough you will have mastered another reading, and then another one, and before you know it you are already more than 40% through the program (which is your current status if you have followed this program so far).
The week to come
This week we are covering the second FRA study session (Income Statements, Balance Sheets and Cash Flow Statements). The session is made up of 4 individual readings. The first 3 provide a walkthrough of the 3 key financial statements in a standard financial report (Income Statements, Balance Sheets and Cash Flow Statements). The final reading is on financial analysis techniques (e.g. various ratios used for comparative purposes).
There are 88 end of chapter questions distributed over the 4 readings (just above 20 for each). You should therefore be able to work through your first iteration of the end of chapter questions for each reading in just above half an hour (maintaining the 1.5 minute per question pace required for the exam).
- As always please ensure that you attempt the end of chapter questions as the first thing when attacking each reading. As you answer the questions make a list of the most difficult ones (especially whenever you resort to guessing). Review your answers thoroughly (particularly those that you got wrong) and add these questions to your list as well.
- Also please ensure that you write down and answer the LOS on flash cards as you work your way through each reading. The combined effort of question practice and LOS statement “hunting” will ensure that you are focused on seeking out the most important information as you progress through each reading. Also continue to create flash cards with key concepts and formulae.
- Lastly as you wrap up each reading attempt only the challenging end of chapter questions from your list. Remove those answers that you can now confidently answer correctly from the list, and if there are any questions left read the explanations thoroughly before you redo them. Continue this process until you have mastered all of the end of chapter questions in the reading.
Lastly, looking back over the previous weeks. Where did you conduct most of your studying? Have you managed to find a quiet spot where you can sit and focus undisturbed for hours? Or are you carrying out most of your studying on public transport or in a room full of distractions (TV, friends/family, internet access etc.) competing for your attention? The positive impact on your comprehension from having a supportive study environment should not be underestimated. If you haven’t committed to do so already, you owe yourself to seek out a supportive study environment for the reminder of the study program.
Talk to you next week!