by Andrew Jones
For access to over 3,000 sample CFA exam study questions and 90+ hours of instructional videos, check out our Fitch Learning CFA Exam Prep app – now available for a free 7 day trial with unlimited access.
About the author: Andrew delivers both CFA® exam preparation courses and non exam finance training for Fitch Learning. Having passed all three levels of the exam as well as gaining a wealth of experience as an industry practitioner he understands the pressures of studying for this prestigious qualification.
Many Chartered Financial Analyst (CFA) exam candidates carry serious misconceptions about both the test and the most effective ways to approach CFA exam preparation. Unfortunately, these common mistakes often trip up otherwise dedicated and qualified candidates, making the difference between a pass and a fail on the exam.
So what are these misperceptions, exactly? And how can you avoid them to make sure all your hard work pays off?
1) Don’t underestimate the test.
This one is key. All too often, candidates imagine that the exam is easier than it actually is — so they don’t put in the necessary study time. The CFA Institute guidelines call for 300 hours of preparation time, and that’s not an arbitrary suggestion. You will need to put in every one of those hours.
2) Leave yourself enough time.
Which brings us to the next mistake. Even when candidates aren’t consciously underestimating the exam, they often don’t leave themselves enough time to put in the study hours they know they need. Those 300 hours represent a major time investment — a significant sacrifice — and making them happen takes careful planning well in advance for most people, not to mention continuous motivation.
3) Don’t neglect what you already know.
“I’ve already learned this material — I can skip to the next topic.” Sounds reasonable, but it can spell failure. Many candidates decide they don’t need to study topics they’ve already learned, but CFA exam preparation isn’t the same as studying for a college degree. The CFA exam tests topics in specific detail, and the volume of information covered means it’s important to study what you already know.
Now that we know which mistakes to avoid, how can candidates sidestep these pitfalls and achieve the best possible results on the exam?
First, start early. That means at least five months before the exam. Make sure you can dedicate 10-15 hours per week until you take the test. Otherwise, passing is simply unrealistic.
When you prepare, it’s important to blend study techniques. Don’t simply read over the material, but take a blended approach so you can think through the topics from multiple angles and keep the material fresh. Read a chapter, then watch an instructional video, then work on practice questions. Those practice questions are particularly crucial.
By applying your knowledge, investing in CFA exam preparation time regularly, and continuously shoring up your knowledge, you can give yourself the foundation you need to succeed. It’s not easy — but the reward for all the time and effort you put in is worth it.