Hi GB,
The best way to learn is by doing it. However you don't have to risk your money to do so. 1000 is very little to invest.
Start with this thread and read the links that interest you.
http://www.traderji.com/beginners-guide/9373-new-members-please-read.html
Then test the system you like.
Paper trading is simply getting a piece of paper and a pen, pick a stock you like for any reason or just because it is the first you see. Write down the stock it's price today and then find out as much as you can about the stock. When the price moves up, find out why, when it moves down, find out why.
You can pick more stocks and decide a BUY price and then decide where to place a STOP LOSS and then when to exit the trade on paper. Keep yourself honest and see if you would really make a profit or a loss. Continue until you are CONSISTENTLY making profits. The trick is to cut your losses short, i.e. minimise your losses, and maximise your profits. Out of 10 trades if you only get one profit and 9 lossess, your profit should be greater than the losses.
Reading the threads in this forum will give you more detail on the above ideas.
Hope this helps.