Thanks for your answers. I believe you've answered my question as asked. I have a related question and another to further clarify what I intended to ask. It is somewhat redundant, but more clear I hope.
Some of your answers lead me to the following question. Moving up a notch to a higher stakes game, which is the biggest pitfall to lookout for, overall, in general terms:
1. Players who are likely to be somewhat more skilled than the competition in the lower stakes game. (Appears not from your responses)
2. Coming up against a different type of game style, such as more aggressive or tighter, that I may not have as much practice in, having played looser, possibly less aggressive games.
For example, I've been playing at the 0.25/0.50 level fixed limit hold'em for a few weeks. In this time period I have encountered some players here and there, fortunately not too many, who'm I can tell play significantly better than me. Then there are games I play which have a much tighter, looser, passive, etc style than the average game I play.
Reason I ask is because frequently encountering 1 and 2 simultaneously, would definitely place me at a considerable disadvantage. Is the risk of running into this situation considerably higher if I move up a notch or two to higher stakes games, than what I encounter by simply playing around in different games at the same stakes level.