Quote from miamihorror:
So-
This test. I absolutely POURED through the study material from the PassPerfect book and the CBOE material, making sure to take every passperfect practice test until I remembered every answer and read the book or 5 times taking meticulous notes over the course of the past 3 months or so. I was intimately familiar with every detail of outlined in the book and the cboe material. I went into this test feeling like I could not have prepared more.
About 5 questions had anything to do with what I had studied, and the other 100 needed to be answered by taking some serious guesses. The material I studied built a 'foundation' but really was not directly linked to anything asked much at all. By the time I was 90% through with the test I felt like I would be doing just as well if I clicked answers without reading any questions.
My advice: Study A LOT. Seriously. This test has barely anything to do with the study material, but it's the best you're going to be able to do. IMO this test is absolutely outrageous and designed to be a prohibitive barrier and nothing more, quizzing people on extraneous knowledge that does not parallel with the daily rigors of their career and highly insufficient preparation material. It might take a few tries to pass, no matter how well prepared you are. A big part of passing, for most, will definitely be sheer luck.
Oh by the way, if I come off as sounding bitter because I failed, I did not. I passed!
Very accurate post and well said. I recently passed using the CBOE manual, however it was a VERY DIFFICULT exam, and had I not been adequately prepared after going through the manual extensively, I would have failed. I do feel lucky to have passed, as I did have to make some educated quesses on many questions.
My sense is the difference between passing and failing will rely on the following:
1. Your prior knowledge of trading (stocks/options).
2. General knowledge of the trading industry and regulations.
3. Ability to use the process of elimination in reading case scenarios to get the correct answer.
I don't see how any newbie trader who joins a CBSX prop with limited trading experience is going to pass this test on the first attempt with the current study materials available. There are way too many questions that fall OUTSIDE the scope of a daytrader who simply trades equities at a prop firm.
However, the CBOE manual does clearly state that the information contained in the manual is not exhaustive and that material on the exam may not be in the guide.
Remember how this first started, the SEC wanted to close the loophole of broker dealers who joined CBSX and did not require traders to have passed any exams. The SEC first wanted to have everyone take the 7, the CBOE disagreed, and they finally came up with this new exam and then extended the deadline twice to allow more time for traders to prepare.
To the CBOE's credit, they have included addendums and revised Chapter 4 which you can access through your log in, so at least they are making changes which will assist others in the future.
My recommendation is to send a note to either CBOE or PassPerfect if you did not pass, and include any topics that you remember that were not covered in the respective manuals, as they can only make revisions based on feedback they receive from traders.
As Jim Cramer often states, you have to do what it takes to "stay in the game", lol!
