I Made $12,000 in a Month and That Scares Me

Update: Read the post and then check the bottom for an update.

My $350,000 portfolio just made $12,000 this month (a mix of dividends and capital appreciation). That’s a 3.4% monthly return. On an annualized basis, that’s nearly 49%. Even if I exclude dividends, the gain is 3.14%, or about 45% annualized.

And honestly… I’m scared.

Sure, I just made twelve thousand dollars without lifting a finger, and it feels amazing. But a big part of me is uneasy because this is not normal.

Why I’m Scared

I’m scared that I’ll start to expect returns like this, that I’ll get used to this high and feel disappointed when the market inevitably cools down.

I’m scared because big upswings are often followed by pullbacks or corrections, and a chunk of those paper gains could easily vanish.

I’m also scared because outsized returns can mess with your psychology:

• You start believing you’re smarter than you are, that you’ve “figured out” the market.
  
• You might take unnecessary risks, chasing even higher returns.
  
• You begin to time the market instead of trusting your plan.
  
• You might spend more because you feel richer, forgetting that this wealth is temporary on paper.
  
• And perhaps worst of all - you might start thinking early retirement is closer than it really is.

How to Fight the Fear

The good news? I don’t need this money right now.

The best thing I can do is to stay grounded and not let this go to my head. I won’t pull money out. I won’t go on a spending spree. I won’t tell myself this is the “new normal.”

Instead, I’ll remind myself that markets move in cycles. A great month doesn’t change the long-term plan.

So I’ll stop refreshing my portfolio, stay invested, and keep focusing on what actually matters - time in the market, not timing the market.

Next time your portfolio surprises you - stay focused on the long-term returns, not the short-term ones.

Update - 2025-11-20

I lasted 17 days without looking at my portfolio. A few dividends hit my account and I wanted to re-invest. I logged in 5 minutes ago and noticed I am down $10,000 since I wrote this post. Although I am still up $2,000 for the month, this goes to show you that these kinds of returns are just not normal. Am I upset? No. I am staying focused on the long-term gains.