I passed

Alpha Trader · Aug 29, 2014

It seems like the pass rate is improving with time. That seems encouragingly positive!

http://www.howwetrade.com/what-is-the-series-56

The series 56 exam allows a testing time of 2 ½ hours, and requires a passing score of 70. Initially pass rates for the exam were very low as high quality study material had yet to be developed. The materials have quickly improved, and while official statistics are not available the exam is now relatively easy to pass for those who study. If a prospective trader fails the test, he must wait 30 days to take the test again. If the trader fails a second time, he must wait another 30 days. If he fails a third time, he must wait 180 days to re-take the test.
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Alpha Trader · Aug 29, 2014

I called the CBEO for the free 30 page guide, but they had no idea as to what I was talking about.
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I think I just might have found the guide. It is summarized pretty well.

http://www.cboe.com/LearnCenter/OnlineU/Modules/Module56/SupplementalOutline.pdf

jb3398 · Aug 30, 2014

Thanks for the link Alpha Trader I am studying my butt off for this exam.

jb3398 · Aug 30, 2014

MoneyMatthew said:
Hello all,

I want to thank everyone who responded to my many Series 56 threads. I need to send a big thank you to drayton sawyer and EvOTraderV2 as well.

I scored an 82% on the exam the Saturday before last. I passed on my 1st try. I'm going to tell you how I did it.

Let me address the subject that scared the hell out of me:YES THERE ARE MULTIPLE QUESTIONS WHERE YOU FLAT OUT FEEL LIKE YOU ARE GUESSING!

I would not label the amount of "pure guess" questions any higher than 15. Remember 5 questions on the test are experimental and do not count for or against you.

I firmly believe that if you do well on the Pass Perfect exams then you will pass the test. I used both the Pass Perfect and CBOE guide to study with. I also made over 500 flash cards to help me memorize important information.

Many people say that Pass Perfect spends too much time talking about Options and BEPs. This is true however, there are a few questions on the real test that should not be missed because you don't understand Options.

I'm going to now share with you the 2-Month Study Path I went on in chronological order to pass this test.

My best words of advice are "control what you can control". Yes you will be ambushed with a few off the wall questions that are not covered in any study guides.

Please do not fail this test because you cant remember when equity options expire or when the NYSE closes!!!

MY PATH:

1. I purchased the Pass Perfect guide new from their website.

2. I did not do that well on the Section Exams on my 1st time through the Pass Perfect guide. I went thought the entire section again if I ever got below a 70 on the section exams.

3. I started searching online for useful information about the exam and I was reading existing threads here on EliteTrader about the exam. I picked up ok info here and there.

4. I decided to take the 1st Pass Perfect Final Exam. I scored a 67 and it hurt badly. I did my best to find out which questions related to which sections and did my best to understand what went wrong. UNDERSTAND THE ANSWER EXPLANATIONS BEFORE MOVING ON.

5. I started to panic because I was reading posts here on ET that spoke of multiple people failing the exam. I had to understand how these people failed.

6. I'm with WTS and they offered some live online Series 56 classes. The class was basically a review of the Pass Perfect guide. People attending this class were remote like me as well as students in New York who where physically in their class room.
I had a chance to hear about the experiences of those who failed on their 1st try. This information combined with what I read on ET made me aware that THOSE WHO RUSH THROUGH OR FAIL PRACTICE EXAMS WILL NOT PASS THE REAL TEST.

7. I went through the Pass Perfect guide again on my own. I did much better on the section exams because I understood everything at higher level combined with the fact that I had questions unintentionally memorized.

8. I need to make it clear that this far into it I have still not taken the other 4 practice Final Exams in the Pass Perfect guide. After many ET conversations online I decided to buy the CBOE guide brand new from CBOE. The CBOE guide includes a book, online practice exams at CBOE's webportal and a 36 page booklet that summarizes information that must be remembered.

9. I read the CBOE guide and booklet and scored a 78 on the 1st CBOE practice exam. This had me very worried because everyone online and CBOE themselves said their online practice exams were much easier than the real test. I thought to myself "if this practice test is so easy then why did I get a 78?"

10. I went back online continuing to post here on ET and searching for additional advice on how to pass this test. I took a real hard look at the types of questions I was missing. What was going wrong? What could I do better? A light bulb went on above my head. THE KEY TO NOT MISSING MOST OF THE QUESTIONS IS SIMPLY MEMORIZATION!!!!

11. I then went out and bought a bunch of yellow note pads,pens,markers and flash cards. I summarized each Pass Perfect section on note pads with MUST KNOW information.

12. From the yellow note pads I then made over 500 flash cards to help me memorize. I also put all of the CBOE practice exam questions on flash cards. Questions like:

"NASDAQ Market Center Aftermarket hours are ?"

"Name the 3 types of orders that are accepted in the NASDAQ Opening Cross."

"The typical par value for preferred stock is ?"

"TRF/ACT Trades are reported when ?"

"Regular way settlement of equity Options trades is ?"

"The holder of an EFT has 2 Ways to exit a position. What are those 2 Ways ?"

"The Securities Act of 1933 regulates what ?"

"In a falling market which two order types on the book will be executed ?"

"The O.C.C. assigns exercise notices to Writers on what basis ?"

ect..ect..ect...

13. After a few weeks of memorization practice I decided to take the 2nd Pass Perfect Final Exam. I got a 75. I was happy to pass but I thought "man I've been a programmer since I was a teenager..I'm smarter than this right??? lol..."

14. I continued to add flash cards and memorize for a few more days.

15. I decided to take Pass Perfect Final Exam #3. I got an 83. Things are starting to look up. On Final Exam #4 I got an 84.

16. On Final Exam #5 I got an 85 with my scheduled test date two days ahead of me. Its time to take this frigin test already!

17. Saturday morning here in Dallas, Texas and its already boiling hot. I got no sleep the night before due to pure fear of failing the test.

18. I arrive at the testing center. To my surprise the Pearson Vue testing center is packed with people, including hot women. Nothing against women but I'm thinking "these people don't look like traders". I am then instructed to give my palm prints multiple times, provide photo id, they take my picture and then they ask me to turn my pockets inside out after I have already emptied my pockets. They inform me that a camera will be recording me. I'm thinking "damn this security is more intense than boarding a plane...the only thing I might blow up is my account..not this building lol...."

19. I then find out that all of these other people in the testing center are there for a college related test (GMAT ect...).

20. I went through the test very slowly. Every mouse click on my final answer selection was full of emotion and it drained me of life force. I finished about 2 Hours into the exam.

21. The "processing" screen was the longest 10 seconds of my life. When it said "Passed 82%" I was like "thank you god!".

22. Grab a drink and reflect.

23. Now for the real test. Become a Consistently Profitable Trader!
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I noticed they provide a pen and calculator, did you have any use for the calculator?

jb3398 · Aug 30, 2014

oldtime said:
If you think you have accomplished something by passing a series 56, you are just a dope getting ready to give your money to a prop firm.

I could teach a homosexual poodle to pass a series 56 if I had enough doggie treats

If you're so godamn smart, how come they are asking you for a deposit?

There you go brainchild, figure that one out.

emg is right

that's why 90% lose
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Old Time your hating hard what certs do you have?

jb3398 · Aug 30, 2014

MoneyMatthew said:
Don't read too much into my post. I'm just happy that it is over with.

Passing the 56 is not curing cancer. It is nothing more than a road block. Passing the Series 56 does not mean I will be a profitable trader.

The Series 56 exam is like taking an exam on how the Casino Industry is regulated in order to be a poker player.

I'm not too worried about my emotions as my trading systems are automated. I feel that I have an edge. My systems can predict Open to Close direction on certain stocks with 65% to 70% accuracy on a daily basis with each day as a data point across years of data.

I have other systems that I am working on that look at pre-market correlation as an indicator of Opening price movement..Do whipsaws and other challenges happen...Yes. Am I guaranteed anything? No.

Take care....
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The fact that you have a license puts you ahead of the curve. I have been trading retail now and have been consistently profitable. It took awhile, but persistence and trading with a virtual account made me into a much better trader.

With that license comes opportunities to short, increase leverage and no PDT.

Alpha Trader · Aug 30, 2014

jb3398 said:
Thanks for the link Alpha Trader I am studying my butt off for this exam.
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I think the material has improved a lot. We will be fine The only thing for me is that by the time I'm done, I will not have looked at a chart for about 3-4 weeks. That get me real rusty and will take another 3-4 weeks to regain that level of sharpness. At least it will be done once and for all!

Alpha Trader · Aug 30, 2014

jb3398 said:
I noticed they provide a pen and calculator, did you have any use for the calculator?
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Yes it comes in real handy. Like when you have to calculate the break even point in options eg $50+$4 premium = $54 break even point!

jb3398 · Aug 30, 2014

Alpha Trader said:
I think the material has improved a lot. We will be fine The only thing for me is that by the time I'm done, I will not have looked at a chart for about 3-4 weeks. That get me real rusty and will take another 3-4 weeks to regain that level of sharpness. At least it will be done once and for all!
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Open an account with TD Ameritrade you don't need to fund the account. Download their ThinkorSwim platform and virtual trade 24/7. After hours log into the Live Account and run the ON Demand software. Or use Paper Money during Market hours. Play with this application at least an hour a day to perfect your strategy.

Alpha Trader · Aug 30, 2014

jb3398 said:
Open an account with TD Ameritrade you don't need to fund the account. Download their ThinkorSwim platform and virtual trade 24/7. After hours log into the Live Account and run the ON Demand software. Or use Paper Money during Market hours. Play with this application at least an hour a day to perfect your strategy.
More...

JB, I'm pretty comfortable with my trading. I hate putting my stats on here for the fear of hate mongers going all psycho on me :eek:

I am very comfortable with my stats and that makes me hold my standards to a higher level. Any less, and even though I may come out positive, I take as subpar trading. I trade equities and so tend to hold and manage multiple positions. Taking that screen time away makes it harder when I come back (it happens every time I come back from vacation), but within a few weeks I get back to par.

In regards to the demo, I am being given one by my prop. It'll also be a good thing to test it out as I have never traded on the Fusion platform. I used DAS and unfortunately, they do not carry that.

However, I do appreciate your input. Thank you .

Alpha.