unsettled trades with Etrade

I've been trading for a couple of months and I signed up with Etrade before I heard all kinds of bad things about it.

I tried to trade a breakout this morning (THE) and I couldn't make the trade cause I had "insufficient funds." I called Etrade and they said I had unsettled trades and that I wouldn't be allowed to trade until Tuesday.

Is this common if I'm using the same capital from the last trade (I only have $1000 in my account and I'm using 100% in every trade) or is this an Etrade thing?

 

Google "SEC Settlement T+3" and read

 

Thanks

 

Some brokers will still let you trade unsettled funds - but do give you a warning before letting you do so. I remember Scottrade doing this.

EDIT
Went and looked if you purchased stock a and sold stock a and then turned around and purchased stock b on unsettled funds - you could not sell stock b until stock a settled.

 

No problem - the solution is to open a margin account, which will of course require more money.

 

I believe the days of brokers allowing customers to "freeride" (trade with unsettled funds) is over because they have been slapped by the SEC. Of course I could be wrong.

 

Yeah, Etrade lets me trade on unsettled money (to a limit obviously) and they give me a warning about how I could have my trading stopped for 90 days if something goes wrong.

Do you think I'm playing with fire? Or is having an unsettled trade do something funny really unlikely?

 

Yea, it's been a while, you are right I am sure.

 

If you need to sell the stock trading on unsettled funds before the first trade settles you could be in trouble.

 

Oh, I think that's what happened but they said I'd be trading again on Tuesday so we'll see. Thanks for the info.