How I cleared Level III after three attempts!

CFA Level III
#1

Dear friends,

I cleared my first two levels as a slam dunk but got stuck badly in my level III in 2008, 2009 and 2011.

I eventually got fed up and went on to do my Exec MBA. (Note: I am in the wealth and asset management sector so the exam helps but is not career changing)

Now I don’t know what happened inside me but in 2016 after much deliberation I decided to take it agai for June 2017.

This is only my story so caveats up front.

Firstly it’s s all about the psychology going in to study or exam. Keep the same psychological frame of mind and you will win. Prepare for a mental war and charge ahead.

I put my head into why I didn’t clear mercilessly and kept digging inside until I found three main reasons:

  1. Ethics in Level 3 is much tougher and is less about knowing or understanding and more about a story said through a 360 degree lens. It’s basically trying to understand how GIPs, the core sections and Ethics all merge to form one big giant story.

Thinking about level 3 as one my giant story really helps, with ethics being something you do every single day.

“30 mins of Ethics a day will go a long long way”

it helps with forming the story

  1. Private Wealth management is very very critical. There are only 2-3 variations of risk/ return calcs- practice the heck out of the previous exams and you are on your way!

  2. Exams exams exams - take as many practice exams as it’s physically possible.

Other miscellaneous notes I made along the way:

These are the notes I kept writing while I did my CFA study.

  • Schweser online videos are really good.

  • see this link by a dude (immensely helpful for last month) will send separately

  • cheat sheets and mind maps for difficult questions

  • at least 5 Practice exams and 3 past exams

  • use CFA textbook and use vital source app with markers for everything. Nonetheless be clever about what’s details vs. Testable, etc. - official CFA ebook is a great central source for note taking, as it helps you look at it on all devices

  • practice ethics and GIPs throughout as an everyday thing

  • memorise formulas, use Schweser 4 pager as a lot for formulas

  • 3 levels of reviews - detailed review of the full CFA text like a funnel as you get sharper about what’s coming on the exam

  1. Weeks

  2. Days

  3. Hours

  • individual PM questions are tough when you think about implications

  • knowing that you will forget stuff is important

  • thinking of the exam as a one big giant blob, with interconnected aspects.

  • finish curriculum by mid-April

  • simulate practice review (as if exam is coming)

  • take practice exam 1 by third week of April

  • see performance

  • lay out a day by day schedule of all topic.

  • read original GIPS handbook

  • start early Jan if possible.

  • keep going as per plan but account for slippage for topic areas that are unfamiliar or nebulous

  • think of “Traps” that CFA examiner would like you to fall into

  • change your study places but keep your music constant

  • don’t underestimate the workload

  • learn the technique of writing answers is really really important - Schweser is a great help with proper videos

  • attempt at least some past exams but focus on the writing style rather worrying about getting it right.

  • time management is important

  • exam techniques - be ruthless about you know immediately and what you think is tricky. It’s not a linear exam so why should your approach be.

  • time allocation is the best guide. If it’s a 2 min question that means don’t over- engineer vs. 5 or even 9 minute question.

  • think about scoring easy points first than how interesting the question is.

  • try and do ethics first - this may help you speed up your time for the item set ( it could come in the morning but not in the past exam I have seen)

  • behavioural finance is Grey, so remember to practice practice and practice. It is not easy and definitions, links and logic is everything. Everything

  • don’t panic in the exam. Doesn’t help one bit. You will not fail because you got a tax calculation wrong.

  • there is a difference is understanding, knowing and owning - remember what you own.

  • be flexible on your schedule

  • try and work out an eco- system at work.

  • take two weeks off will help but you can do it in one week!

#2

Thanks! I started early but the material is too comprehensive to store in mind. Scaring the hell out of me!

#3

Thank you for sharing!

#4

Thanks for sharing your experience.

It’s interesting that L3 can elicit such a range of perceived difficulties. I know some who felt L3 was the easiest of the three levels, whilst others easily passed L1 and L2 and struggled a lot at L3.

#5

Thanks for the useful tips! Your story is inspiring.

#6

I think some are better test takers than others. I am not one of them unfortunately, but it seems that for level 3, the ones who really know the material and weren’t able to breeze thru the first two levels relying on their test taking ability are better prepared. They know the material better and thus have an easier time with level 3.

#7

Fot those who work in asset management, level 3 is favorable for them. For those who work in financial service advisory, auditing or similar job, level 2 is easier for them than level 3. No other rules.

And I’m also studying at the moment. Just do not think I’m teasing you. That’s why I’m still here.:slight_smile:

#8

Thanks for sharing this. I’m taking my first shot at L3 this year and plan on finishing all the readings by early-mid April. The open ended questions are pretty intimidating. I liked L1 and L2 because when you answered the question there was no grey area on if you got it right or wrong. The open ended questions also take a lot longer to do and I find myself wanting to skip them. How did you evaluate yourself when doing EOCs and open ended blue box questions? Did you ask a friend or did you just feel really good about your answers? I’m feeling pretty overwhelmed by this question format and could use advice on self grading.

#9

Sorry I didn’t respond earlier, there was no notification. Thank you for all the comments.

In terms of grading your own answer, Schweser does a pretty good job at this.

Few things to keep in mind:

  1. Keep things punchy and get straight to the point, at all costs. Long winded statements are useless.

  2. Be harsh on your own grading as that is the only way to improve.

  3. Re-read your answers, your corrections and suggested answers (from exams).

  4. Refer to suggested answers to previous exams from Schweser.

  5. Watch videos from Kaplan on how to write answers and suck it all in.

  6. Simplicity and brevity are your best friends in the exam - you just don’t have the time to write more than necessary.