It depends on if you're playing for fun or playing to build your bankroll. If you're playing to build your bankroll, the idea is not to play any tournaments larger than 1-2% of your stack. In your case, that means avoiding anything larger than a $1.40 tournament and sticking to the microstakes.
Adhering to this principle also helps you survive bad runs and natural variance. You're going to lose a lot, but the goal is to win more than you lose over time. Good luck.