President Trump traded more than 3,600 individual securities in Q1 2026. Do I need to be more active in my portfolio?

Before diving into this topic, it is important to note that this article is not intended to be political. Regardless of personal opinions, headlines involving high-profile investors and trading activity often lead individuals to ask an important financial question: Should I be doing more inside my own portfolio?

Recent reports indicating that President Trump traded more than 3,600 individual securities during the first quarter of 2026 certainly grab attention. To many investors, that level of activity can create the impression that successful investing requires constant trading, rapid adjustments and an aggressive approach to portfolio management.

However, for most long-term investors, more activity does not necessarily lead to better outcomes.

One of the biggest challenges with frequent trading is that it can create significant tax consequences. Every time an investment is sold in a taxable account, there is the potential to realize a capital gain. If the investment has been held for less than one year, those gains are generally taxed at ordinary income tax rates, which can be substantially higher than long-term capital gains rates.

When turnover becomes extremely high, taxes can begin to create a meaningful drag on returns. Investors may also encounter additional transaction costs, bid ask spreads and the challenge of trying to consistently time markets correctly.

This is one reason why many professional investors focus less on constant trading and more on broader portfolio construction.

Research has consistently shown that asset allocation often plays a larger role in long-term portfolio outcomes than individual security selection. In other words, the overall mix between stocks, bonds, cash, international investments and alternative assets may matter more than identifying the next winning stock.

For example, an investor with a properly diversified portfolio aligned with their risk tolerance may often achieve more consistent long-term results than someone frequently rotating between individual positions based on headlines or short-term market movements.

That does not mean portfolios should remain static forever. Markets change, economic conditions evolve, and adjustments may occasionally be necessary. However, there is an important difference between strategic portfolio management and constant reactive trading.

Strategic adjustments may occur when there are meaningful changes in:

- Interest rates

- Valuations

- Economic conditions

- Personal financial goals

- Tax laws

However, these changes are typically implemented thoughtfully and over time rather than through constant day-to-day trading.

One of the most common mistakes individual investors make is confusing activity with progress. Making frequent changes can feel productive, but excessive trading often increases complexity and emotional decision-making.

History has shown that consistently staying invested through market cycles has generally been one of the most effective long-term wealth-building strategies. Missing just a handful of strong market days due to poorly timed trades can have a meaningful impact on long-term returns.

Tax efficiency also matters. Long-term investing allows gains to compound over time with less interruption from taxes. Frequent turnover, especially in taxable accounts, may reduce the benefits of compounding by accelerating taxable events.

Ultimately, successful investing is rarely about constantly chasing headlines or making hundreds of trades. More often, it comes down to:

- Maintaining an appropriate asset allocation

- Staying diversified

- Managing costs and taxes

- Rebalancing periodically

- Remaining disciplined during periods of volatility

For most investors, a well-structured long-term plan combined with thoughtful adjustments will likely prove more effective than a highly active portfolio with lots of trading.

So while headlines about thousands of trades may be interesting, they do not necessarily mean individual investors should become dramatically more active in their own portfolios. In many cases, consistency, discipline and patience remain some of the most powerful investment tools available.

Reid Schwartz is a columnist for The Item and Co-Founder of Creech Schwartz Wealth Management in Sumter, SC, where he works as a financial advisor helping individuals, families, businesses, and nonprofits plan for long-term financial success.

*Tax and accountancy services are not available through or provided by Creech Schwartz Wealth Management or &Partners, LLC.

This article is for educational purposes only and not to be interpreted as tax or legal advice. Any tax planning strategies discussed by Creech Schwartz Wealth Management will be in conjunction with your tax/legal professional. All investing involves some degree of risk, whether it is associated with market volatility, purchasing power or a specific security. There is no assurance any investment strategy will be successful. Asset allocation does not guarantee a profit nor does diversification protect against loss. Past performance is not indicative of future results.

Securities and investment advisory services offered through &Partners, LLC, a broker-dealer and investment adviser registered with the U.S. Securities and Exchange Commission and member FINRA, SIPC.