Volume 9, Preview Issue

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Welcome to the CMT Program

CMT Prep Materials Welcome to the May 2014 Administration of the CMT Program Sample Question Booklets For those of you that are entering your first exam administration, congratulations on your decision to pursue your CMT designation the Gold Standard in Technical Analysis. You will receive this newsletter weekly with special instructions and recommendations to help you prepare for these rigorous exams. Level I: Book A Level II: Book A Level III: Book A

Sample Quiz Questions For all candidates that sat for an exam during the October 2013 Administration, please note that all results have been posted to your MyCMT page in the MyMTA members only social network. Simply log in to view your results. Level I: Set A | Set B | Set C Level II: Set A

Registration for the May 2014 Administration of the CMT Exam is now open for all levels. Sign up today to ensure your preferred location by visiting: http://www.mta.org/eweb/dynamicpage.aspx?webcode=cmt-registration-process. If you have any trouble scheduling your exam with Prometric (our outside test center) or need help registering, please contact Marie Penza. For detailed instructions on registering online, click here.

The Level I & II exams will be offered worldwide on May 1st, 2nd, and 3rd, 2014. The Level III exam will be offered on May 2nd, 2014. Whether you are advancing to the next level or need to retake a previous exam, please register today. We encourage you to share this newsletter with colleagues who are interested in the CMT Program. If you would like to hear from CMT Charterholders on the value of the Program and charter, simply watch this video. If you are currently enrolled in the Program, we encourage you to schedule your next exam as soon as possible. Prometric is working with us to open all seats to CMT candidates at their test centers around the globe. Stay tuned for the next issue which will focus in on Theory, History and Markets: Dow and Efficient Market Theory. Also, well hear from a successful CMT candidate on his best practice tips for studying and passing all three levels! Our goal is for you to succeed. So lets get started by making sure you understand exactly what will be tested on all three levels of the exam and where you can find the most up-to-date preparatory materials. Most Sincerely, The CMT Support Staff

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Body of Knowledge

The CMT exam tests the critical knowledge and tasks needed to perform the duties of a technical analyst. The tasks provide context for designing exam questions which reflect real professional responsibilities. These tasks were validated through a job analysis conducted in 2010 in addition to the recommendations made by the Test Specifications Committee. Careful and continual review of Recommended Reading Lists the discipline, the available literature, and the practical requirements of technicians, results in the Body of Knowledge upon which you will be tested. The books and chapters that the MTA recommends for successful completion of the CMT Program The CMT Program is designed for self-directed study under the guidance and support of the MTA. Each Level of the exam builds upon concepts from previous levels. While the knowledge is cumulative, exam questions will not reappear in subsequent levels. CMT III candidates are responsible for the readings assigned to all levels of the CMT Program curriculum. The three-part examination consists of: CMT Level I (120 scored items with a focus on definition). The CMT Level I examination measures basic, entry-level competence and understanding of the candidate. The Level I candidate needs to have a working knowledge of the basic tools of the technical analyst. CMT Level II (170 questions of which 150 are scored). The exam is a combination of application and higher level definitions). The Level II exam requires the candidate to demonstrate a greater depth of analysis and competency. The Level II candidate is expected to demonstrate proficiency in applying more advanced analytical techniques. Overall, the candidate is responsible for the theory and application of concepts and techniques. CMT Level III (an essay examination with a focus on integration). The CMT Level III examination tests the candidate on the development of logical and consistent research opinions, portfolio strategies and trading decisions based on a wide range of charts and technical data. The Level III candidate must pass the ethics portion of this exam in order to be successful.

CMT Level I CMT Level II CMT Level III

In 2004 the MTA commissioned the original body of knowledge study through Prometric to support the ongoing development of the CMT examination. A body of knowledge study is designed to obtain descriptive information about the tasks performed in a job and the knowledge needed to adequately perform those tasks. This body of knowledge study was the basis for the technical analysis material required to successfully pass the CMT examination process. In 2007, a Pulse Survey was taken to update the CMT test specifications to better reflect changes in the study of technical analysis. In response to continued changes in the study of technical analysis and membership growth, the MTA, with the

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guidance of Prometric, completed the 2010 Job Analysis to ensure that the CMT exams reflect the knowledge and tasks required to perform technical analysis. To view this important document, please follow the link below.

The CMT Exam Program is designed to be SELF-STUDY The CMT Support Staff recommends the following minimum study hours* for each Level of the CMT exam.

Level I -- 100 hours Level II -- 140 hours Level III -- 160 hours

*These recommendations assume each candidate has a college education and work experience in the financial markets. Recommended study time differs from person to person based on experience with the subject, time working in the field and prior knowledge of technical analysis. However, these rigorous exams require significant effort from any candidate wishing to successfully complete all three levels.

Books for the CMT Program are not sold through the Market Technicians Association. However, anyone who is registered for the CMT Program may obtain a 50% discount on the published price of Jeremy du Plessis's book entitled "The Definitive Guide To Point and Figure" by following this link http://www.global-investor.com/mta.

Books can be purchased through many retail distributors such as Amazon and via a dedicated webpage created by Trader's Library specifically for our candidates (www.invest-store.com/mta). If you have any questions regarding your purchases from this website, please contact Becky Dean at mbdean@traderslibrary.com.

A limited number of copies of recommended readings are available to members and affiliates for short-term loan through the MTA Library at Baruch College. However, we recommend purchasing your own copy of each resource for reference throughout the CMT Program and your future career as a technician.

Download a printable PDF of the Body of Knowledge

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Letter from Bruce Kamich, CMT Adjunct Professor of Finance at Baruch College
How to study for a test After teaching perhaps 3,000 undergraduates and graduate students over the past fifteen years, I have some suggestions to share on how to study for a test and how to take a test.

First, I would be sure to allow yourself sufficient time to study. Never take on too much pressure for yourself. Our industry expects you to pass everything (remember taking the Series 7?) the first time out. If you are registering late, you have already cut down the time window until the exam.

I would make a schedule and an outline of the material you need to cover between now and exam time similar to a course outline: Week 1 chapters XX and XX. Topics XX Week 2 chapters XX and XX. Topics XX

Some of us have self-discipline and good work habits but the longer you are out of school, the harder it is to study. Unlike some courses, there is no curve for the CMT Exam and no extra credit to bring up your grade!

Do what you need to do Use a highlighter when you read the textbooks for the Exam. Use flash cards or index cards to commit new or especially difficult material to memory. I carried a set of homemade flash cards on the bus for five months while studying for the Series 86 Exam. Take notes & make outlines.

Do not assume that because you have used indicator for a long time that you can pick the right answer. This is your career and your money. Have a plan and execute it.

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Taking an important test Before the test you should: Be rested. Be confident but not cocky. Avoid coffee and caffeine if you can.

During the test you should: Read the questions carefully. One word can make a big difference. For example: All, but All, except Which one is not true? Read the answers carefully. Again, one or two words can make the difference. Drawing a blank? Skip that question and come back later. Doodle or draw this may help you figure out the correct answer. This is a visual subject to a great degree. Eliminate answers that are obviously wrong. And never forget to smile when you leave the test center! Wishing success to you all, Bruce M. Kamich, CMT

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Introducing the Managing Director

Letter from Gordon Scott, CMT: Studying for any high stakes exam can be a daunting endeavor. By now you've heard a wide range of opinions about the CMT exams. Perhaps you heard rumors of the person at your workplace that didn't even read anything and just took the first exam and passed it on the first try, or of the unfortunate soul who has failed their CMT exam three times in a row. Years ago I remember hearing of those experiences and finding them most unhelpful as guidance for how to prepare for the exams. In this newsletter so far weve given you some useful guidelines to follow for what to expect from your studies. But I'd like to go further and suggest that there are two ways to prepare for the exams based on your current circumstances. This guidance is anecdotal in nature and is based on my experience guiding dozens of team members with a former employer on how to study for the CMT. Effective preparation time varies depending on whether you are a skilled and experienced test taker or not. How you choose to study will be most effective if you work within your circumstances. If you happen to be in the middle of some kind of hiatus right now, you can study the first way: all in, fully immersed as if it were your full time job. If not, you should study the second way, spread your study time out over several weeks and possibly months. Some people wonder if it is a good idea to plan to take a week off from work to study heavily about a week or two just before the exam. This is actually a bad idea. While it can work well as a supplemental strategy, it is prone to one big error: overconfidence. What happens to too many test takers is that they make such a plan and then let their busy lives crowd out study time week after week. They tell themselves, no problem, Ive got that week planned, Ill study then. Then when the week arrives, they find they cant master it all quickly enough. Or they find that their busy life has spilled over into their study week. Either way they approach a state of mental panic and find it harder to study effectively. It is much more effective if you can build a regular pattern of study into your week (say two to four hours) and keep that study up for two or three months. On the other hand, If you do have a lot of time on your hands, I think you can do all the study you need to prepare for each exam in about three weeks of full time study. If you have been working in technical analysis for several years, and the material is second nature to you, then you may only need about half that much time. The newsletter is designed to help out here by offering 10 weeks of suggested preparation materials (beginning officially next week). But please understand that these newsletters can in no way adequately prepare you for the exams all by themselves. You will want to add as much study as you can to be prepared for the exam.

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The last thing you want is to experience the trauma of sitting in the testing center, watching the computer screen give a "wait..." message while it tabulates your results, knowing that you just completed a test for which you were so ill prepared that you ended up simply guessing at a large number of questions. That moment where you sweat and suffer through the anticipation as seconds seem like decades and you dread what you are about to see when the screen changes. You can do better than that if you make a habit of reading through some assigned chapters and taking some practice test questions each week. Lastly, let me offer this little tip. You do not need to simulate the testing experience by doing a full test each time you practice. Studies suggest that this is a valuable exercise for any high-stakes exam if you do it once about one week right before the exam. But up until that time, you can informally and casually review each practice question one at a time to better understand the subject and the answer. I look forward to congratulating each one of you as you pass the CMT exam. Best wishes, Gordon Scott, CMT.

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Upcoming Study Resources

WEEKLY EDUCATIONAL WEBINAR SERIES TO FEATURE BODY OF KNOWLEDGE AUTHORS The MTA is pleased to announce that over the next few weeks, for the first time ever, the Educational Webinar Series will feature the authors of the primary texts in the Body of Knowledge. Many of them have presented on the Educational Webinar Series before, but this will be the first time that they will be speaking specifically about the topics in their books, with an aim of helping Exam takers be better prepared for the test. Here is the list of the authors that will soon be presenting during this series:
2/19/2014 2/26/2014 3/5/2014 3/12/2014 3/26/2014 4/30/2014 5/21/2014 Charles Kirkpatrick, CMT Martin Pring WHC Bassetti Perry Kaufman Wayne Gorman Jeremy du Plessis, CMT Connie Brown, CMT Technical Analysis Technical Analysis Explained Technical Analysis of Stock Trends Trading Systems and Methods Elliott Wave Principle The Definitive Guide to Point and Figure Technical Analysis for the Trading Professional

SPECIAL LEVEL II WEBINAR In addition to these exciting webcasts, CMT Program Managing Director Gordon Scott will also give an educational webinar specifically geared for students who intend to take the second exam in the upcoming administration. Things you should know about the CMT II exam, will be intended as a resource for those who feel overwhelmed in their study and application of the principles in the CMT II body of knowledge. This exam features a review of the sticking points frequently encountered by candidates taking the second level exam. Gordons presentation wont be given as part of the normal educational web series but will be done as a special Tuesday webinar. 2/18/2014 Gordon Scott, CMT Things you should know about the CMT II exam.

If you miss the live presentation, be sure to review the recording if you are CMT II level candidate.

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Scheduling Your Exam CMT Exam Reimbursement Explained

SCHEDULING YOUR CMT EXAM AT PROMETRIC: Due to an unprecedented number of candidates taking the CMT exam we are urging everyone to schedule their exam at Prometric as soon as possible and certainly before the deadline of April 1, 2014; unfortunately, after that date registration will be on an availability basis only.

If you find that there are no seats available in the test center you wish to take your exam in, please contact Marie Penza right away (marie@mta.org) and she will have Prometric schedule you. Sometimes this might take a week or two because Prometric either waits for a cancellation or is arranging to have the test center open earlier/stay open later so that they can accommodate everyone.

It is best not to wait until a few days before registration closes, or after it has closed, to contact Marie about scheduling your exam. This is especially true for CMT Level III candidates. CMT III candidates need to be scheduled by the last day of registration (April 1, 2014). Prometric closes scheduling promptly at 5 PM.

Dont forget, register and schedule your exam as early as possible!

REIMBURSEMENT FOR CMT EXAMS GI BILL The MTA is pleased to announce that the US Division of Veterans Affairs has approved the reimbur sement of CMT exam test fees nationwide for veterans and other eligible persons. For information on how to submit reimbursements after your examination, please visit: http://go.mta.org/3576

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