Small stakes cash games — whether live or online — can be profitable, but only if you're able to avoid the following much too commonly made mistakes.
Mistake #1: Fancy Play Syndrome
Fancy play syndrome is trying to pull too many moves on a simple-minded opponent. Let's be honest, when you are playing $1/$2 at the local casino or $0.05/$0.10 blinds online, your competition is not always world class. In fact, a lot of the time, they are either total beginners or just one step removed from that.
When you make that four-bet bluff preflop with ace-rag in order to "merge your range," this is going to go completely over their head most of the time.