Thanks for the info Mock. I understand it a lot better now. Looks like I won't get dragged
out of my bed in shackles, but it may cost me a few bucks. ;o)

To make a long story short, for individual investors trading in a Scottrade account, they
usually won't let you partake in any illegal trade in the first place. In other words, if
you can do it, then it isn't illegal.

Thus, the worst that happens is you buy something "on margin", which just means you borrow
money from your brokerage to buy the stock. Be careful about doing this, though, as they
charge you a really high interest rate...

Hahaha I feel you're pain, HazyDavy. The first month I began working for a money manager
at an investment firm a couple years ago, I bought a stock right after the guy I was
working for bought the same stock (it was actually just a coincidence). Then, after my
bosses trader told me that my boss had just bought that same stock, and that it was
illegal for me to buy that same stock within 2 days of him buying the stock (you still
following me? hahaha), I - frightened that I might be fired and permanently banned from
the business - immediately sold out of the stock, just after I had bought it.

Turns out, if you work for an investment firm and you sell before the settlement period,
you are "penalized" and have your account frozen haha. My account was frozen for like a
month. Thus, I wasn't allowed to make any trades - OTHER than the one "trade" I was forced
to do: they had to "break the trade" that had me selling that stock just after I had
bought it, forcing me to buy back the stock. Then they had to "break" me purchasing the
stock as well. hahaha.... horrible experience...

as long as the unsettled funds have a settlement date earlier than the settlement date of
your buy you're fine.

I bought with unsettled funds yesterday, then sold today. What's gonna happen to me? Am I
gonna have to appear in court of something?

you can buy with unsettled funds, you can't sell until its settled, usually 3 days, If you
day trade your required, if you use scottrade, to have a margin account. nothing wrong w/
being a day trader, that's my goal. You can day trade 2 times in 5 days without being
considered a day trader, and if you have enough cash avail in your account you won't need
a margin account.

if you buy a stock today with unsettled funds and sell it also today you will be
considered free riding and that's a no no.

Yes, it says the amount is available for trading. Thanks!

Each stockbroker is different - if you have a margin account and you have not exceeded the
margin amount then you can buy immediately. One word of caution, don't buy/sell more
than 3 sameday trades in a 5 day period or your account will be flagged a daytrader. I
use Ameritrade and on the home page there is a catagory called "available for trading" and
that amount is the amount I can trade immediately. Look and see if you have info that
will tell you the amount available for trading. Hope this helps.

If I buy a stock with unsettled funds, then sell it, can I buy another stock right away or
do I have to wait 3 days?