[quote=anonymous]

Confidence or lack thereof has little to no bearing on whether you answer a multiple choice question correctly.

[/quote]

Are you saying this?  There are two guys sitting down at a Series 7 test.

One of them has studied his ass off, the other one did little, if any, preparation.

The first question pops up and what it says is:

Which of the following reduces the risk associated with writing an uncovered put option?

a.  Being long 100 shares
b.  Being short 100 shares
c.  Being long a call on the underlying stock
d.  Being long a warrant to buy 100 shares of the underlying common

Are you saying that they will both be equally comfortable with the question?

I suggest that when one out of every five of the questions is along those lines the exam candidate is going to begin to doubt their ability to handle the others.  I not only suggest that, I know that.

Whichever one understands uncovered put options better will be more comfortable with the question. 

If someone doesn't know the answer, I do agree that their confidence level will drop.  My point is that this lower confidence level won't cause them to get the answers wrong when they know the answer.

The person who knows the answer will experience an increase in self confidence.  This increased self-confidence won't allow him to answer a future question when he doesn't know the answer.

[quote=anonymous]

Whichever one understands uncovered put options better will be more comfortable with the question. 

If someone doesn't know the answer, I do agree that their confidence level will drop.  My point is that this lower confidence level won't cause them to get the answers wrong when they know the answer.

The person who knows the answer will experience an increase in self confidence.  This increased self-confidence won't allow him to answer a future question when he doesn't know the answer.

[/quote]

I suggest that a wide receiver who catches a pass has more confidence on the next play than a wide receiver who did not catch the last one thrown to him.

Similarly, if a guy is taking Series 7 and sees question after question that he cannot even interpret he is going to begin to lose confidence in what he does know.

There is no way that confidence can be maintained in the face of continued failure.

[quote=Big Easy Flood][quote=joedabrkr]

Frankly, as a New Yorker who had many friends there(including one who never came home) I find your usage of this analogy HIGHLY offensive in this context.  Then again, Put Trader, I'd expext nothing less from you.

[/quote]

Stop whining.  My point is that ....[/quote]

Wow, Put didn't even deny it  

[quote=mikebutler222][quote=Big Easy Flood][quote=joedabrkr]

Frankly, as a New Yorker who had many friends there(including one who never came home) I find your usage of this analogy HIGHLY offensive in this context.  Then again, Put Trader, I'd expext nothing less from you.

[/quote]

Stop whining.  My point is that ....[/quote]

Wow, Put didn't even deny it  

[/quote]

Deny what?

Get answers wrong and one will lose confidence.  This still won't stop the person from answering questions correctly when they know the answer.

In my case, it did nothing to my confidence because I knew in advance that I wouldn't get the options questions correct.

This 7 crap sucks… I hate the 7… I dislike the 800 page books… I like to communcate, market and sell!!! GOD BLESS THE FUTURE!

[quote=7GOD63]This 7 crap sucks... I hate the 7.. I dislike the 800 page books.. I like to communcate, market and sell!!! GOD BLESS THE FUTURE![/quote]

Yep, who would think that a guy who handles people's money should know what he's doing?

   Yes, why should the auto mechanic have to learn about engines… Heck, just get in there and turn wrenches. Want to be a doctor?? Why wast all that time? Skip medical school and just start prescribing medicine.   As a matter of fact, I think all occupations should be based on a trial and error methodology.  Win some lose some.

[quote=babbling looney]   Yes, why should the auto mechanic have to learn about engines... Heck, just get in there and turn wrenches. Want to be a doctor?? Why wast all that time? Skip medical school and just start prescribing medicine.   As a matter of fact, I think all occupations should be based on a trial and error methodology.  Win some lose some.[/quote]

As we all know, the only thing standing between somebody and success in anything is opportunity.

Let's not pretend that passing the 7 means that someone knows what they are doing.

Med School and a Residency teaches one to be a doctor.  Passing the 7 does not train someone to pick stocks, bonds, etc.  and it certainly has nothing to do with planning.  It simply means that you are licensed to sell securities.  No meaningful knowledge that would help one help a client is learned. 

[quote=anonymous]

Let's not pretend that passing the 7 means that someone knows what they are doing.

Med School and a Residency teaches one to be a doctor.  Passing the 7 does not train someone to pick stocks, bonds, etc.  and it certainly has nothing to do with planning.  It simply means that you are licensed to sell securities.  No meaningful knowledge that would help one help a client is learned. 

[/quote]

Nonsense.  Understanding what you are dealing with will help a client.

Are you telling us that a salesperson who doesn't know the difference between a stock and a bond is going to be as good for a client as one who does?

Yes, you must know the difference between a stock and bond, but nothing in the 7 teaches you when one is appropriate for the client.

The 7 is good for weeding some people out of the career, but it does not teach very much usable knowledge.

It's a starting point and nothing more.  I would put it on a par with the MCAT.  Do well on the MCAT and a university will be willing to help you get the knowledge to become a doctor.  Pass the 7 and then a firm will help you learn how to sell securities.

[quote=anonymous]

Yes, you must know the difference between a stock and bond, but nothing in the 7 teaches you when one is appropriate for the client.

The 7 is good for weeding some people out of the career, but it does not teach very much usable knowledge.

It's a starting point and nothing more.  I would put it on a par with the MCAT.  Do well on the MCAT and a university will be willing to help you get the knowledge to become a doctor.  Pass the 7 and then a firm will help you learn how to sell securities.

There are many succesfull people that failed the 7 on the firm attempt ( Jack Grubman for example from the tech boom ) not that he is a good example but my point is.... there are many good producers that you might not expect that did not pass on the first attempt. Give it another try and then go kick some butt!

Do smart people fail the exam--or is failure something that happens to dumb folks?

If one has a lower expectation of themselves and others when it comes to testing perhaps they have a lower definition of what success is?

Smart people understand that their exam score doesn't put money on the table for their family.   The fact that a score is given doesn't stop it from being anything more than a pass/fail exam.

One of the top producers who I know failed the exam twice.  He's dyslexic and a terrible exam taker, but very bright.

Regardless, smarts is low down on the scale of what makes someone successful in this business. 

[quote=anonymous]One of the top producers who I know failed the exam twice.  He's dyslexic and a terrible exam taker, but very bright.[/quote]

I don't know about you, but a dyslexic rep sounds pretty scary to me..."let's see, was that order for 1,000 shares of WMT or WTM?"

[quote=anonymous]

Smart people understand that their exam score doesn't put money on the table for their family.   The fact that a score is given doesn't stop it from being anything more than a pass/fail exam.

One of the top producers who I know failed the exam twice.  He's dyslexic and a terrible exam taker, but very bright.

Regardless, smarts is low down on the scale of what makes someone successful in this business. 

[/quote]

A smart person would grasp "No passie no workie."

I'd be interested in hearing how anybody who is going to take a high stakes test can decide that they've studied enough to pass.  I believe it's ridiculous to conclude that somebody who scores a 70 on the Series 7 is actually capable of scoring in the high 90s but they let up becuase they knew they were going to pass.

I believe that everybody who takes the test does the best they can do, and that sadly for our business the best an awful lot of people can do is barely passing.

There is something scary about a man or woman who doesn't know 30% of what is being tested still being allowed to handle folks money.

The passing score should be raised to 85 or 90 and a college degree in something should be required.

To the original poster:



I hope you come across as more intelligent than you actually are,
otherwise you’re going to have one heck of a time winning
clients.  You don’t need to be a genious in this business but
clients expect a certain level of intelligence from the person managing
their future.  From your 56% you don’t seem to possess a level of
intelligence that will impress prospects.  I’m sorry but its the
truth.  The test is not even difficult - I got a 88% without
trying.  Would you want a doctor who failed his medical license
exam?