Every CFA candidate searches for the secret formula, the one approach that guarantees success. After clearing all three levels myself and guiding numerous candidates through the program, I have distilled it into a mantra that captures the essence of what it takes.
The mantra is simple: Understand deeply. Practice relentlessly. Execute calmly.
These six words, when genuinely applied, form the foundation for clearing the CFA exam. Let me break down each component and show you how to apply it practically.
Part 1: Understand Deeply
The CFA exam does not reward superficial knowledge. It tests whether you truly understand concepts well enough to apply them in unfamiliar scenarios.
What Deep Understanding Looks Like
There is a meaningful difference between knowing a formula and understanding it. Consider the Gordon Growth Model: P = D1 / (r - g).
Surface-level knowledge: You memorize the formula and can plug in numbers.
Deep understanding: You understand that this formula values a stock as the present value of a growing perpetuity of dividends. You know why the denominator is (r - g) and not just r. You understand that the model breaks down when g approaches or exceeds r. You can explain the assumptions, including constant growth rate, constant required return, and infinite time horizon, and identify when these assumptions are unrealistic in practice.
The CFA exam, especially at Levels 2 and 3, tests deep understanding. A question might change the scenario slightly from what you studied, and only candidates who truly understand the underlying concept can adapt.
How to Build Deep Understanding
Ask “why” at every step. Do not accept a formula or rule without understanding the logic behind it. Why does duration measure interest rate sensitivity? Why do we add back depreciation in free cash flow calculation? Why does LIFO produce lower net income than FIFO during periods of rising prices?
Teach what you learn. Explaining a concept to someone else, whether a study group member, a friend, or even an imaginary audience, forces you to organize your thinking and reveals gaps in your understanding. If you cannot explain it simply, you have not understood it deeply enough.
Connect concepts across topics. The CFA curriculum is not a collection of isolated topics. It is an integrated body of knowledge. When you study equity valuation, connect it to the accounting concepts from Financial Reporting and Analysis. When you study portfolio management, relate it to the risk concepts from Quantitative Methods. These connections deepen understanding and improve retention.
Use multiple sources. If the explanation in your primary study material does not click, find another source. Watch a video, read an article, or ask a mentor — having the right guidance can make all the difference, as we discuss in our piece on the role of mentorship in CFA success. Different explanations of the same concept often illuminate different aspects of it.
Common Traps That Prevent Deep Understanding
Speed over depth. Rushing through the curriculum to “cover everything” often means understanding nothing deeply. It is better to genuinely understand 85% of the material than to superficially cover 100%.
Passive reading. Reading without actively engaging with the material creates an illusion of understanding. You feel like you know the material, but when you encounter a practice problem, you realize you cannot apply it.
Formula memorization without context. Memorizing formulas without understanding what they represent is brittle knowledge. One slightly different exam question will expose the gap.
Part 2: Practice Relentlessly
Understanding concepts is necessary but not sufficient. The CFA exam tests your ability to apply knowledge quickly and accurately under time pressure. This requires practice, and lots of it.
The Science Behind Practice
Cognitive science research consistently shows that retrieval practice, actively recalling information from memory, produces far stronger and more durable learning than passive review. Every practice problem is a retrieval exercise.
Furthermore, practice under exam-like conditions builds what psychologists call “automaticity,” the ability to perform tasks quickly and without conscious effort. When you have solved dozens of time value of money problems, the process becomes automatic, freeing your mental energy for more complex analysis.
How to Practice Effectively
Start practicing early. Do not wait until you have finished all the readings. After completing each topic area, immediately do practice problems. This reinforces learning while the material is fresh and identifies gaps early.
Practice in exam-like conditions. At least some of your practice should mimic exam conditions: timed, without notes, using only your approved calculator. This builds the mental stamina and time management skills you will need on exam day.
Analyze every mistake. A practice problem you get wrong is more valuable than one you get right, if you learn from it. For every incorrect answer, identify the root cause:
- Did you misunderstand the concept?
- Did you misread the question?
- Did you make a calculation error?
- Did you run out of time?
Each type of error requires a different corrective action.
Do problems from multiple sources. The CFA Institute’s question bank is essential, but supplement it with questions from your study provider and any other available sources. Different question styles test your understanding from different angles.
Revisit problems you previously got wrong. Wait a few days, then redo them without looking at the solution. If you can solve them correctly, the learning has stuck. If not, you need further review.
Practice Volume Benchmarks
Based on what I have seen from successful candidates:
| Level | Recommended Practice Problems | Mock Exams |
|---|---|---|
| Level 1 | 2,000-3,000 questions | 3-5 full mocks |
| Level 2 | 1,500-2,500 questions | 3-4 full mocks |
| Level 3 | 1,000-2,000 questions + essay practice | 3-4 full mocks |
These are guidelines, not rigid rules. Some candidates need more practice, some less. The key indicator is your mock exam performance, not the raw number of problems completed.
Part 3: Execute Calmly
On exam day, your knowledge and preparation are fixed. What you can still control is your execution, and execution under pressure requires calmness.
Why Calm Execution Matters
Anxiety impairs cognitive function. Under stress, your working memory capacity decreases, you are more prone to misreading questions, and your ability to think through complex problems degrades. The paradox is that the more you care about the outcome, the more anxiety can hurt your performance.
The candidates who perform best on exam day are those who are well-prepared and calm. Preparation builds competence; calmness ensures you can access that competence when it matters.
Building Exam-Day Composure
Simulate exam conditions in practice. The more familiar the exam environment feels, the less anxiety it produces. Take mock exams in environments similar to the actual testing center. Time yourself strictly. Practice with only your calculator and pencils, no notes.
Develop a pre-exam routine. Establish a calming routine for the morning of the exam. Whether it is a specific breakfast, a short walk, a few minutes of deep breathing, or listening to particular music, having a routine provides a sense of control that reduces anxiety.
Plan for difficulty. Expect to encounter questions you cannot answer. This is by design. The CFA exam includes questions at various difficulty levels, and even top scorers miss questions. When you hit a difficult question, acknowledge it and move on. Do not let one hard question cascade into anxiety that affects your performance on subsequent questions.
Use the “two-pass” approach. On your first pass through the exam, answer questions you can handle confidently and flag the rest. On your second pass, return to flagged questions with whatever time remains. This ensures you capture all the “easy” points first.
Manage your physical state. Stay hydrated (but not excessively), eat appropriately before the exam, and take deep breaths if you feel tension building during the exam. Physical comfort supports mental performance.
The Night Before and Morning Of
The night before:
- Do not study intensively. A light review of your formula sheet or Ethics notes is fine.
- Prepare everything you need: ID, calculator, pencils, admission ticket, snacks for the break.
- Go to bed at a reasonable hour. Sleep is more valuable than last-minute cramming.
The morning of:
- Wake up with enough time to avoid rushing.
- Eat a balanced meal that you know agrees with your stomach.
- Arrive at the testing center early. Being rushed increases anxiety.
- During the final minutes before the exam, take slow, deep breaths and remind yourself: “I have prepared. I know this material. I will execute calmly.”
Putting the Mantra Into Practice: A Weekly Framework
Here is how to embed the mantra into your weekly study routine:
Monday through Thursday: Understand deeply. Focus on reading, note-taking, and concept comprehension. Engage actively with the material, asking why and connecting concepts.
Friday and Saturday: Practice relentlessly. Shift focus to practice problems and topic-level tests. Analyze mistakes and identify patterns.
Sunday: Review and calibrate. Review your error log, adjust your study plan for the coming week, and take a step back to assess your overall progress. This is also the day to practice calm execution through timed mini-tests.
The Mantra Applied Across All Three Levels
The mantra applies at every level, but the emphasis shifts:
Level 1: Practice relentlessly is particularly important because the exam rewards speed and breadth. You need to answer 180 questions across two sessions, so automaticity through practice is essential. For a step-by-step framework tailored to Level 1, see our guide on the 5 steps to ace CFA Level 1.
Level 2: Understand deeply becomes critical because the vignette format punishes surface-level knowledge. You must understand concepts well enough to apply them in detailed scenarios.
Level 3: Execute calmly is especially important because the constructed response section requires you to organize your thoughts clearly under time pressure. Anxiety leads to disorganized, incomplete answers.
When the Mantra Fails: Dealing with Setbacks
Sometimes, despite good preparation and execution, you do not pass. The CFA exam has a significant element of variability, and even well-prepared candidates can fall on the wrong side of the passing threshold.
If this happens, the mantra adapts. Cultivating a growth mindset is what allows you to treat setbacks as learning fuel rather than verdicts:
- Understand deeply — what went wrong. Analyze your topic-level performance. Was there a systematic weakness?
- Practice relentlessly — on your weak areas. A retake gives you the advantage of knowing where to focus.
- Execute calmly — by approaching the retake with determination, not desperation. You have been through the process before. Use that experience.
Final Thoughts
The CFA exam is a substantial challenge, but it is a solvable one. The mantra — understand deeply, practice relentlessly, execute calmly — is not complicated. What it requires is disciplined, consistent application over months and years.
There is no trick, no shortcut, and no secret material that substitutes for genuine understanding, thorough practice, and composed execution. But if you commit to this approach, you give yourself the best possible chance of earning the charter.
If you want help applying this mantra to your specific CFA preparation, reach out for a free mentorship session. Together, we can build a personalized plan that turns this mantra into your reality.