Comments from a guy on a different board that left me speechless (and with a few less brain cells).
Why did I waste three years of my life trying to pass L2 when I could have relied on “Passivation Phenomena.”
Hello Everyone, A few days ago, I posted here after received a PASS for level 2 exam via email. I too excited and disclose that I only have 1 week to prepare the exam. It is not joking, and it is not because I am too confident on myself. It has some reasons. In Q1 this year, the market is very bullish and my personal positions investment raised 40% till Mar. After such a bullish movement, a pullback is predictable. Thus, we took back all my own money, leave all the profit there and take a one month vacation. I planed to study CFA II after come back which is one month before the exam. However, when I came back, my position has been cut in half which is far more than 10-20% loss as I think. This loss put me in a very bad mood, so I have to start to do something to rescue my profit. After everything is done, I realized I only have 1 week to prepare the exam and I still have a full time job to do. Below is my experience for the exam, and I hope it will help some of you. Principle: [What you get is depends on what you think, so here I provide my two principles for the exam.] I. Passivation phenomena. Passivation phenomena exists everywhere, for example, when you look at RSI, you will see passivation in both low and high position. What that mean? Is there any relationship with the grading? Sure, Passivation phenomena exist in everywhere and of course, the exam is not an exception. The grade is based on scale, 50% is a threshold, thus the extremely bad, very bad and bad will almost got the same score. Nobody, nobody who held a certificate exam will put too many credit to differentiate the low scores. Got it? II. Erroneous Perception for accuracy, and margin effect reduce. The items are based on choice, there is only black and while, right and wrong with nothing is the middle. This is, you have 100% confidence to make a right answer only when you have 100% understand to the question! No 90%, no 80%. Let’s do a simple math, if you know nothing, you will have 25% chance to make a right answer. If your level is 80%, OK, you will able to remove 2 wrong choice, but after that, you chance is still only 50%. Any difference? According to principle I, 50% will have almost the same score with 30%. Plus, everybody here knows what’s mean by margin effect reduce. You probably only need a few hours to make yourself have 30% confidence to a LOS, but you have 10x or 100x study hour to make you ability across 50%. Right? 10x study hours, almost same score, is it worth? Situation: I am very familiar with equity analysis, quantitative method and economics; Neural in Financial reporting and derivatives; Not good in all the rest. Strategy: I use the whole week in those sections. 60% in equity, quantitative, economics, and put another 40% time to Financial reporting, derivative and ethics. Completely ignore all the rest. Method: Question only, no book, no note. Take a look of a item, and go back to notes to find answer ASAP if you feel any tiny study point in the item that you are not full understand. Result: A in equity, quantitative, economics; B in Financial Reporting, derivative , ethics; C in all the rest; Not very good, but it is a Pass. Here is my experience, hope some of you will be benefit from it once you have no time to prepare the exam. Of course, if you have enough time, start study as soon as possible. My last word, do not be extreme on anything. Enjoy your life. You can not control everything, never. Good luck.