The Series 7 exam tests for a wealth of knowledge, but the options questions and other calculations seem to be the ones that are most daunting to examinees. Most securities training courses want to give you formulas to solve this and that, but studying by memorizing formulas is a failed test strategy- here’s why:
It’s impossible to memorize the different ways a question may be asked.
The test writers are notorious for asking questions that involve varied vocabulary and are written in a way that requires real understanding of a subject. They aren’t trick questions (in fact, most are quite straightforward) but they are challenging because they test an examinees familiarity with the topic and its jargon. With about 35 questions that could deal with options strategies for the test you can imagine all the possible scenarios that may arise.
T Charts don’t help you understand what is being asked in a question.
Understanding of options themselves is the MOST important part of being able to successfully answer a test question. The fact is, if you understand how options work at a basic level, you can pretty much figure out (using basic arithmetic) how to solve any math related option problem. T Charts may help you organize your sums once you’ve understood the concepts, but they certainly aren’t a magic bullet to replace a real grasp of the concepts.
Questions found on the Series 7 can often be multi-layered.
You may remember in school that cramming for an exam never really worked, and in the case of the General Securities Representative Exam this couldn’t be truer. It’s not a far cry to say that you may need 3-4 pieces of separate knowledge to make sense of the info they give you in a single question.
Comprehensively learning all the securities material will put you in a better position to succeed and we have the tools to help you do that in an efficient and effective way. If you want to give yourself the best chance of passing the first time, subscribe to our blog and enroll to our securities training material. We outline the correct way to prepare for FINRA exams.