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VictoryMBA
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I think you should buy into whatever way they want you to do it! I've never taken the MGMAT course but I'm sure they have a lot of experience the highest score out of the students in the class. Buy into your teacher and the materials if at the end of the course you aren't where you need to be, you can reevaluate the situation.
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Try note cards. Every day at the gym I bring my note cards like a huge nerd and study them while doing cardio - and at night I put in 2 hours of studying practicing problems. I'm not one of those super scorers yet (e.g., 700+) - but I've made a considerable jump in my score and really think it's helping. So basically, you have to do both ;-)
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You won't learn anything if you're just trying to memorize formulas instead of applying them. To learn them, you've got to practice them. Pick one question type at a time and do several practice questions before moving on to the next type.

It's not a matter of memorization; it's a matter of understanding through doing.
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PRACTICE, PRACTICE and memorizing will be automatic.
Look at this, just for fun: 11-t62631
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I've found that picking one theory, studying problems to reinforce it and then repeating for others works really well. For me, I learn by practice so a reinforcement of concepts via problems is always good!
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I still think if you are going to take a prep class you should buy into the system. I've read that veritas and mgmat both believe in teaching the theory first, the idea is that most students mindlessly blow through a bunch of problems and don't learn anything and waste perfectly good problems they could use the methods to practice on.

It's not like they are going to tell you to not practice ever they just want you to lean the methods first and then apply them to the practice problems.
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