Believe it or not, most experts agree that beginning option traders shouldn't actually trade real options. Instead, spend a few months by trading options on paper. Of course, this is quite different than using real money but it can be a great way to learn option trading.

After you have spent some time tracking your trades on paper or with a spreadsheet, the least painful way to gain experience is to start trading options on a small scale until you build your confidence and skill. When you buy options with low prices under $2 or so, you do not need to risk much money at the beginning of your option tutorial.

Another important piece of your options trading journey is to make sure you open an account with the correct broker. If you use a discount broker or an online brokerage, it can help reduce your commission costs and boost your overall returns. But remember that with many discount brokers and online trading houses, you must do most or even all of the order entering by yourself. As you learn option trading, it can be helpful to have a broker that provides some help.

Don't, however, let the broker of your choice convince you to try a "managed" options account. Its smart to manage your own funds if you insist on trading options. But you shouldn't invest all your funds at one time into the options market. Often traders get impatient and fall for spending all their funds on"sure things", just to find their options wither and their investment vanish.

You should have an extended plan when it comes to purchasing. Spread your purchases out over several months or longer. Always pay attention to diversification and buy both calls and puts. The very basis of trading options is that put options are profitable when the stock, index, or market goes down; and call options are profitable when the equity price increases.

If you are not able to find a good trade that you feel will offer you a solid risk-reward right now, always keep in mind that there will be more opportunities to choose from in the future. And it is extremely important to be patient and never play with money that you can't afford to lose.