The current lights are fine, and they should be only a few inches away from the plant. If the first smooth leaves (the cotyledons) are the only leaves that are dying, and the rest of the plant seems OK, then the plant is probably OK. And don't use miracle grow. For an inexpensive initial fertilizer you can use something like fish emulsion. But don't fertilize yet, wait till about the second or third week. Then if the plant takes that well you can use a stronger fertilizer if you want.