I am sitting for the upcoming Level 1 exam in December. This will be my second time taking the Level 1 exam; I took it the first time this past June. My question is, if I don’t pass it this time, is it really worth it trying a third time? Should I just give up if I don’t pass the second time?
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First of all, I would encourage you to concentrate on passing the exam instead of worrying about failing it. Having a pessimistic attitude isn’t going to help you. You want to go into that exam feeling confident.
I wouldn’t personally go for a 3rd time on L1. That’s not advice I’m giving you here, it’s just what I would do. Failing L1 twice would tell me one of 2 things, 1) I’m not putting in the required amount of time into this thing, so my priorities aren’t aligned with what is required to pass all 3 levels, and it’s only going to get harder. 2) My brain just isn’t suited to CFA material.
Sorry if that’s not what you want to hear. I’m sure loads of people would tell you to never give up and give you the coach pep talk.
cleverCFA@gmail.com
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Thanks Clever! I actually was thinking along those same lines too. I definitely have the determination and grit. I have been studying like crazy over the past year. I am enrolled in the Creighton program and that has definitely helped me. I am coming from a non-financial background so it’s taken some time for these topics to sink in. They are sinking in and I have been over the material several times. I have taken a lot of notes and saved them on quizlet.com. I’ve gone over those as well, editing and tweaked them. I have a process, and have been following it. I am getting discouraged because I am sitting down to take a practice exam (Schweser) and I just can’t seem to remember anything. Its inexplicable. Some of these little details these exams test you on are so minute and nearly impossible for me to remember. I remember the real exam not being like this and a bit easier but I am just incredibly discouraged right now.
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Hey Tomdilello. I’m not sure what to tell you. The one thing that I really pick up from your posts though is that you seem to really fear the material. With any subject (math, literature, CFA, whatever), if you have an attitude going in that you fear the material, it’s going to be really hard for you to conquer the material. I had the same thing with FRA for L1, I had this attitude towards the material that was very negative (I can’t do this, no way). You need to change this attitude, I don’t know how, but you just do otherwise you’ll never pass, or you’ll scrape by and then get pounded by L2. Take the attitude “this shit is easy, I’m not going to let it faze me in any way”. Changing your attitude and perception of the material is probably the first step you need to take in order to have any chance of passing.
cleverCFA@gmail.com
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I hear ya clever. Some days I jump out of bed and think I am going to simply crush the exam. Other days I am so so and days like today I feel like the exam is going to crush me. I have more “I will crush the exam” days though. The material is so vast its a wonder anyone passes it.
Dude, one problem at a time. Now is time to focus on the test. The second you finish the test you can start worring about the the outcome….but not one second earlier…
If you fail Level I more than twice, you really have to consider the fact that this exam is easy compared to level II and III and what will the cost be for you to pass those remaining exams exams. That being said, plenty of people fail level one and is a wake up call and go on the pass Level 2 and 3 with no problem. Keep in mind that just passing level I and not the others is really a waste of time. I think that many people who struggle to pass Level I or even Level II should consider doing an MBA with an emphasis in finance or doing a MSF and then revisiting the CFA once they have gained the proper foundation needed to pass these exams.
I think it depends on the reason for failing exams….are you failing it because you don’t understand the content or are you failing it because you are a bad test taker?…Many ppl understand the stuff but fail the exam.
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You must be the square root of two cause i feel irrational around you
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Give yourself every chance to succeed. Your mentality is not helping, be positive with yourself, if you are reasonably smart and have a work ethic and focus, you will pass this exam. Just think of all the dumber people you know who have passed and that should be enough motivation to get you through this.
don’t make a million notes, focus on RETENTION of KEY concepts, and DOING EOC questions. Don’t expect yourself to remember every single little detail, that will drive you insane.
Then again, if you don’t get rid of all this self-doubt, just save yourself the pain and quit. It doesn’t get any easier.
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If you can afford it and you have the time for it and your sacrifices to study for it dont hinder your life, then go for it.
Without a clear goal-setting process, especially in finance, it’s almost a bit unseemly to talk about “making it” or “getting ahead” like some people do, but when you have a clear goal in mind, there is absolutely nothing wrong with striving to “get ahead” until you “make it” to your goal.
Edit: … and then you set your next goal.
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Thanks for all the responses guys! I have the time to study and the determination. I have a full time job that pays the bills too so I’m not pressed for cash. I am not the best test taker but I have a good understanding of the material. Before the exam I forgot my passport and had to rush home to get it. That was bad and probably messed me up. My worst sections were ethics, quant and derivatives but all the other sections I scored in the 50-70 and 70-100 range. I’m slightly above average in the intelligence department and I think I will keep trying until I pass it. I am doing the degree program at Creighton as a “backup” so if I keep failng at least I will have a MSF to show for it. I would probably consider going for an MBA like Palacio mentioned if I never pass level 1.
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Remember this:
http://www.despair.com/stup24x30pri.html
This isn’t like the ACT or Series 7. If you don’t put everything you’ve got into it, then you won’t pass.
And if you put everything you’ve got into it, and you still can’t pass, then you can’t pass.
It hurts, but it’s the truth. Anybody who says “I’ll take the test until I die” is an idiot.
:”Training to be a Jedi isn’t an easy challenge. And even if you succeed, it’s a hard life.” Qui-Gon Jinn
The best way to deal with your question is to pass the test!
My suggestion on how to do that is to completely own ethics. I say this because it’s guaranteed to be on the exam, the ethics material is very similar for all three levels, and there isn’t that much of it. Further, there’s an ethics bump in the grading of some sort, although the CFAI is vague about what it is.
I used a different approach from most people. I spent 80% of my time reading the CFA books and really trying to understand them, and only did the EOC problems toward the end and the practice tests at the very end, so the material would be fresh in my mind. You’re a month and a half away from the test now so you want to execute the program you’ve laid out, but I would carve out several days right before the test to carefully read and think about the ethics chapters in the CFA books and to work enough problems to nail down the concepts. You’ll never know everything in the CFA program, but you can know everything in ethics.
For me, it was pointless to do the problems too far in advance, because I would just forget it again. Timing your program to peak the day of the test is part of the trick.
The program is long and hard, and it takes a lot of persistence and study to get through it–a lot more than 300 hours/level in my case. That’s just how it’s designed.
Hope that helps. Good luck and see you on the other side!
You’ve only failed once. Don’t look so far into the future at a 3rd attempt!
What is your background? Which topics pulled you down at your 1st attempt?
If you’re from an unrelated background, login to Khan Academy for basic primers on finance/stats/math/economics etc. It’s free.
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Does this exam have any relevance to your current job? Is someone else paying the bill? If not then you might consider giving up on the idea. If you are taking this exam with the expectation that it will lead to you getting hired then you should give up on that idea now. But if you’ve already been hired and the people you work for are pushing this then great, go for it.
If you already have the job in finance and this is a clear logical way to gain knowledge and advance professionally then maybe keep going. I know plenty of people in finance who did level’s 1 and 2 just to give up at level 3 because they didnt need the test anymore. It’s not a decider for most people professionally.
I’m in a similar situation. I’ll be sitting level 3 this spring having failed it once before two years ago. It seems like a lifetime since I started the CFA program and I am ready just to get it over with. I should be all right but at this point it doesn’t matter a whole lot whether or not I complete the program. I’m 29 now. I’ve got 6 years of experience doing what I do and I’m an expert in it. The CFA program does not really enhance my knowledge any further in my field. The only reason I’m sitting for the exam is pride and a desire to finish what I started.
I really liked learning the CFA curriculum but the exams can be far more difficult to pass than necessary in my opinion. It enhances the ego of the charter but not really the substance.
Finally, if you are failing level 1 then odds are you are not preparing correctly. Preparing correctly means going over the curriculum carefully, making flashcards and taking notes. Answering EOC questions and understanding why you got them wrong or right. Finally, lots and lots and lots of practice exams and analyzing where you went wrong or right on those.
If you are avoiding any part of what I just mentioned then you are doing it wrong.
Formerly ChickenTikka - Member of the Order of the Righteous Rusty Hacksaw
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My background is technology. I have a BS in comp sci and I work in fixed income at a bank. However, I have been studying value investing as a hobby for several years now. And by hobby I mean I was obsessive about. At a certain point in 2011 I decided I was going to go all in and study and sit for the CFA exams. Investing isn’t a passing fancy for me nor do I want the charter to merely get a better job and make more money. I want to really know this material as best I can so I can use it.
I found Khan several years ago and have been using his videos for some time but thanks for the heads up.
My worst subjects where ethics, quant and derivatives. Followed by fixed income and economics. All other sections I score in the >70% range.
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Thanks Chicken. The exam doesn’t have any relevance to my job. Someone else is paying the bill … for the masters at Creighton and I am paying the bill for the exam and Schweser material etc. I think I did not prepare correctly for the exam the first time. This time I have many flash cards and notes and have reviewed them several times. I have about a month and a half before the exam and I have already started practice problems in the Schweser QBank. I have a schedule for each day from now til the exam and so far I am on track. Thanks again for the tips.
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Hey,I also took 2 times to pass the lv 1.I understand the feeling of the anxiety and the opportunity cost of devolting that much time on material.
little advice;
1.calm down yourself and find out where your previous fail parts.
2,for the prepartation,not only using the notes from schweiser or wutever,but also,the most important is using your curriculum to understand the material
3.do as much questions as you can,make the summary of wrong questions,understand them,do it again and again.i actually summed up around 800 questions i did incorrectly,then use the curriculum find out where my fault was.
sincerelly hope you will pass,do not worry,as long as you put the effort,the satisfactory outcome will be yours. :)
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Also,one other thing need to remind.The materials have logics ,same as the mathematic formula on the exam.sometimes you do not need to remember them hardly but instead,using the deduction to solve.try to remember things based on equations,graphs,or etc that makes you have a logic tree.
This bring back lots of memories. I failed level 1 once, level 2 once and level 3 twice. A lot of fails but still managed to finish it and get the designation. You need the 4 years experience anyways and most people don’t get the actual designation until they are 30 given some experience might not be applicable.
I know why I failed and you have to access why you did too. My circumstances were just due to time constraint; with work and unwilling to give up my social life, I was only able to squeeze out around 10 hrs max a week of studying (real focus studying). I would say the 2nd time around of writing it you will be much more relaxed and have a solid understanding of the materials. Although when I failed, I usually would be around the Band 8-10.
So you have to look at two factors
1) Did you spend enough time?
2) What band are you in when you failed? Band 7-10 I would say you knew the materials enough to pass but some luck played into it. Remember, there are many questions you have to guess and others as well. Pass or fail are very much determined on how you guess those 5-10 MC questions. (this is referenced to the majority of the people who cluster near the bell curve).
Also, don’t let people scare you about materials getting harder. The materials do connect some how, but it doesn’t get harder.
You don’t need to spend more time on level 2 or 3, you probably spend the same amount of time learning different materials.
Infact, I find that some of the level 3 materials are actually very easy compared to level 1 and level 2.
Cheers,
Whystudy, CFA
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I’m pretty sure my problems stemmed from not focusing on what I was getting wrong. I rushed through the material and didn’t really stop to think about what the questions were asking and what was being tested. I am being more thorough now, doing fewer questions but really thinking about them. As it happens the more I think about the questions the easier they become and the more of them I can do!
As far as devoting enough time, I am definitely ok in that department. Before I started studying I cancelled cable tv and stopped going out entirely. After I failed (I was in band 9 btw) I joined a gym at work and started lifting weights during lunch time so I could have the entire evening to myself. In short I basically reoriented my time around studying and being productive.
Focusing on being calm is also key. I have time. I have taken all my notes and gone over all the material. I just need to practice, practice, practice.
I think if you go in feeling fully prepared for L1 this time, having corrected what you thought were your problems the first go round and you still fail, it might be time to reconsider the CFA program. It gets quite a bit harder at L2 and L3. Not to discourage anyone too much, but if you’re really putting your best effort forth and you fail L1 twice, you probably have a very long road ahead of you.
If you end up failing because you didn’t put in enough time or you didn’t study efficiently, you’ll want to evaluate if you’re willing to put in the time to do it right and pass (and then do it again at least two more times).
That said, hopefully you’re able to correct what went wrong last time and knock it out in December and just keep that momentum rolling. Good luck to you.
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You can fail level 2 and 3 even with good prep. Lots can go wrong. You need to be ok with that and persevere if it does.
Passing level 1 is no small feet if you have never studied this stuff before and are not use to this type of exam. So don’t listen to guys who majored in what is essentially the level 1 material tell you how easy it is. If they had to learn everything that you learned in college in 3 months they would find it damn difficult.
If value investing is an obessession level 2 will be fun and relatively easy for you. That’s pretty much all it is.
Getting through level 2 is the hump. When you pass that you feel as though you’ve gone from being very far away from the charter to almost there in an instance. It was a great feeling, although two years later I still haven’t gotten the charter.
That said, based on what you’ve said, I’d skip it. Sounds like you don’t need the charter for your job. It just isn’t worth the time and effort. If you like the material so much give it a read, skip the parts that you are not interested in. Enjoy it.
Focus on your job. That’s way more important than this stupid certificate which is designed for a specific group of professionals who are already in the club. If you’re not in the club then don’t bother. Even if you are in the club, probably don’t bother, unless someone tells you that you have to it. It ain’t worth it. Every charters older I know, personally, says the same thing.
Formerly ChickenTikka - Member of the Order of the Righteous Rusty Hacksaw
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Thanks Chicken. Sorry if I wasn’t clear, but the whole point of doing this is to switch careers. I don’t like programming as much any more, it’s just not for me. Studying for the CFA is just one step in my move out of technology. The charter isn’t a panacea. I know this. I don’t expect riches to poor from the sky once I pass all three levels. I know how much more work I will need to do just to be considered for any position. Most of my friends are in finance so I know how it is.
If I weren’t studying for this I would probably be either loafing around / goofing off or studying for something else … philosophy, international relations, politics, economics, history. So the way I look at, and use time, is probably different than most people. It’s my nature to goof off so I take on tasks that require time and effort because I know how valueable time is.
Having said that, I try not to do stupid things and if I can’t pass level 1 after trying and trying I should drop the image I have now of becoming an analyst and create a new image and move on. Thanks for the feedback though!
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If the purpose of the test is to switch careers then skip it. I don’t think it will help too much. Focus on getting the job first.
There are literally thousands and thousands of people who have passed a level or two who did the same thing and can’t figure out why they can’t get hired. They’re not you. I’m not saying you can’t do it. But for them the CFA hasn’t gotten it done. It’s not enough.
I would focus on your programming skills. If you a whizz with excel and what not then you are well on your way.
Formerly ChickenTikka - Member of the Order of the Righteous Rusty Hacksaw
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I was thinking of starting my job search after passing level 1 (if I pass). I wanted to aquire enough of a knowledge base to propel me forward. I was studying a lot of this stuff previously but not dilligently enough. The CFA has helped me become more focused and wiser with my time. So in a way it’s already been a success (even though I haven’t passed)!
What do you do for a living?
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Start your job search now. F the “If I pass.”
Passing doesn’t mean anything. Hopefully by studying for the exam you can at least BS which is all you need.
I work for a private bank managing their alternative investments in Russia and Asia. I didn’t get the job because of any CFA knowledge. I used my mafia connections to blackmail them into giving me the job.
Formerly ChickenTikka - Member of the Order of the Righteous Rusty Hacksaw
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From my experience, if you really want to get the desgnation, don’t give up! It took me 3 times to pass L1. The main takeaway from that failure experince - I didn’t study the right way. I adjusted my approach and studied “smart” for L2… Just as an example, a friend of mine is going to take L1 test for the fourth time this December… You’re not alone.
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I don’t think you should give up if you fail again. If you’ve already devoted that much time to studying as you say you have, I believe your problem is lack of practice vs. lack of time spent studying. I would suggest you start doing a TON of mock exams and tallying up your mistakes by section e.g. 10 mistakes in FRA, 2 in Econ etc… and go back and review those sections. You should be able to consistently score 70% or higher before the exam in my opinion. Hang in there, you still have plenty of time!
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