What is the best strategy for someone who can only afford to start out with <$500?

It seems like commissions kill you unless you invest a lot. Even for a discount broker like trade king at $4.95.

That's

4.95x2 = $9.9 rounded to $10 that's a 5% loss if you invest $500. It's even worse if your broker is TD Ameritrade (which I use... for the tools mostly) where I spend $20 just on commissions. I've looked into penny stocks but the risk seems scary especially for a beginner (I have about a year of experience and I've done a lot of simulated trading.)