12 Minute Read

Friday Feature: The Story of Alpha (Part 3): How to keep Alpha?

September 6, 2019

By | No Comments

Friday Feature: The Story of Alpha (Part 3): How to keep Alpha? | Interview with Mark Justice

Achieving alpha is the bare minimum standard for a trader.

Mark Justice —

The world is ever-changing and the markets are indefinitely unique everyday. When you are trading for the long haul to build your legacy, how do you make sure you can keep alpha?

Even with the ever-changing trends, geopolitical uncertainties and “Trump tweets”, there are simple truths that every trader can develop to stay in the game and prosper for life.

Recently, I sat down with Mark Justice, one of the coaches and Halftime show host at Tackle Trading to get his take on how to achieve long-term success in the market.


Pearl: What does Alpha mean to a trader? (Knowing this term is confusing for many)

Mark: Alpha for trading is different than for investors. When you are stock picking as an investor, if the market is performing at 9% a year and you did 12% a year, then you have alpha. The view of “buy and hold” on something to achieve alpha simply doesn’t apply to traders. This is not a high probability scenarios and it’s way too hard to do. However, for a trader, a simple covered call strategy will outperform the market. In fact, as a trader, if you can’t outperform the basic market index, there is something wrong with your portfolio. Achieving alpha is the bare minimum standard for a trader. 

Pearl: A lot of people think, alpha is not achievable long term. So how do you think about the sustained performance of a trader? How would you give advice on how to maintain and keep alpha?

Mark: Advice is simple, start with basic cash flow principles. It should not only be sustainable; it should be a given. It should be standard. If you know how to do OTM covered calls (not during earnings) with proper management then alpha is sustainable.

Pearl: Overtime, how would you describe your portfolio structure, your trading personality developments?

Mark: The older I get, the boring I am in trading. I have competence in directional trading with commodities, forex…etc., however, I am now implementing more cashflow strategies to build long term passive income. I believe in diversification of the portfolio where you are in total control risk. No single trade or event can deter the overall growth of your portfolio. There is no exposure to risk with any type of strategy. 

Pearl: In the course of the years you actively traded, I’m sure there are times where there were challenges to meet your own expectation in performance. How did you deal with this?

Mark: There is always a learning curve. You are not going to be good at this on day 1. You are expected to make all the mistakes that you should make before you find your flow and rhythm. It’s important that you enjoy doing this for the long haul and that’s how you get through various stages and succeed for the long term.

Pearl: What do you think of the major trends between long term buy and hold investor, AI programmatic trading and human trading?

Mark: I don’t think the buy and hold type of investor can make money long term in this market. I’m a believer that the market is becoming more and more irrational. You just trade with the trend and the trend is getting stronger due to programmatic and AI environments. Traders are great to piggyback on AI for a more definable trend and more consistent recognition of the trend. Both uptrend and downtrend are getting more powerful. I want more AI because it makes well-educated traders wealthy.


I don’t think the buy and hold type of investor can make money long term in this market. I’m a believer that the market is becoming more and more irrational.

Mark Justice —

Want more perspectives on Alpha? See previous episodes:


Pearl Li. The Theta Finder. In the Making.

Tackle Trading: Pearl Li.

Pearl Li previously has been a product management professional for more than 10 years working at well-known companies such as Amazon and Nielsen Company. She took the leap in 2016 with Elite Legacy Education to learn about building long term wealth through financial market trading/investing. In 2018, Pearl happily left her job to pursue investing/trading fulltime producing theta style trading that generates monthly cashflow. She is thrilled to be a voice on the Tackle Trading platform to share her transformation as she goes through various phases of her growing experience.


Tackle Trading: Financial Freedom is a Journey. Sign up now for a 15-day free trial.

Financial freedom is a journey

The Tackle Today series is brought to you by Tackle Trading.

Sign up now and gain unfettered access to all of the quality content and powerful Scouting Reports that our Pro Members enjoy for 15-days absolutely free with no strings attached and let us show you what your trading has been missing.

# Sign up now for a 15-DAY FREE TRIAL #


Legal Disclaimer

Tackle Trading LLC (“Tackle Trading”) is providing this website and any related materials, including newsletters, blog posts, videos, social media postings and any other communications (collectively, the “Materials”) on an “as-is” basis. This means that although Tackle Trading strives to make the information accurate, thorough and current, neither Tackle Trading nor the author(s) of the Materials or the moderators guarantee or warrant the Materials or accept liability for any damage, loss or expense arising from the use of the Materials, whether based in tort, contract, or otherwise. Tackle Trading is providing the Materials for educational purposes only. We are not providing legal, accounting, or financial advisory services, and this is not a solicitation or recommendation to buy or sell any stocks, options, or other financial instruments or investments. Examples that address specific assets, stocks, options or other financial instrument transactions are for illustrative purposes only and are not intended to represent specific trades or transactions that we have conducted. In fact, for the purpose of illustration, we may use examples that are different from or contrary to transactions we have conducted or positions we hold. Furthermore, this website and any information or training herein are not intended as a solicitation for any future relationship, business or otherwise, between the users and the moderators. No express or implied warranties are being made with respect to these services and products. By using the Materials, each user agrees to indemnify and hold Tackle Trading harmless from all losses, expenses and costs, including reasonable attorneys’ fees, arising out of or resulting from user’s use of the Materials. In no event shall Tackle Trading or the author(s) or moderators be liable for any direct, special, consequential or incidental damages arising out of or related to the Materials. If this limitation on damages is not enforceable in some states, the total amount of Tackle Trading’s liability to the user or others shall not exceed the amount paid by the user for such Materials.

All investing and trading in the securities market involves a high degree of risk. Any decisions to place trades in the financial markets, including trading in stocks, options or other financial instruments, is a personal decision that should only be made after conducting thorough independent research, including a personal risk and financial assessment, and prior consultation with the user’s investment, legal, tax and accounting advisers, to determine whether such trading or investment is appropriate for that user.

Leave a Reply

Chart Modal

Tackle Trading