Help with this Unsettled Funds message.

C

comp652

I get this message if I buy right after selling something.
Scottrade is my broker.

So far I've clicked the Yes button and gone on to my next buy trade.

What should I do?

You are using unsettled funds for this purchase. If you sell this purchase prior to the settlement date of the funding sale, without additional funds being deposited, it will be considered a free ride under Federal Reserve Regulation T. Please review "Unsettled Funds - Trading in Cash Accounts" located in the Education Center or contact your local branch for further assistance.


Do you want to continue with this order? (Click the 'Yes' button to submit the order.)
 
First mistake, you are trying to daytrade with scottrade, sure fire way to direct failure at those prices.

I'm going to assume you are trading the pennies, another way most people fail a this game.

Search ET about prop firms and join one. Simple eh? :D
 
You didn't say whether you're daytrading or just switching positions, nor the amount involved.
If you're just switching positions,just don't sell the new position until after the sell trade settles. If the money involved is over $2000 ,you may want to open a margin account and see if scottrade will move the trades into the margin account.(if you want to sell the position before settle ment day)
You can also trade in a margin account without borrowing if you stick to just using your cash available.
If you are planning on daytrading you need to understand the margin rules regarding daytrading otherwise you may get some bad news regarding a margin call/retrictions on trading. Unless, of course, your account is worth $25,000

As far as free riding, it would be no big deal as you would be restricted to having cash on hand before buying anything(at least, that's the way it used to be.
Either way- check with Scottrade's help files regarding this or have your broker explain it to you
 
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