You said bring the heat, so I'm going to be blunt in my response, but after reading your extra info about the player in question, it sounds like he might have gotten in your head, causing you to fall into his trap, which is why he was showing all of those bluffs in the first place. Realize that there is a lot of money that can be made at this limit, so even though there are fish, the sharks will be there too. On to the hand:
Mistake #1: Raising in early position with KJo. Why even play this hand? Especially out of position. Hands like this are like A-7o, you will win a small pot or lose a big one.
Mistake #2(a): Betting only $24 after the flop. Look at the odds the villain got: 3.62:1. If he's got 9 outs, then he may not be getting the right odds to call, but if you consider that he has position, implied odds, and is a tricky player, it's probably right for him to stay in. If he's got the NUT flush draw and thinks that the other three aces are outs as well, then he's getting the correct odds right now to make the call. Implied odds are just gravy.
Mistake #2(b): OK, let's say that your $24 bet was an INFORMATIONAL bet, with the goal of figuring out where you stand. Not the worst play in the world, but then failing to act on the information constitutes a mistake. I think it was a huge mistake to call the $48 raise, for several reasons. 1. You have to play the rest of the hand out of position; 2. There was a raise AND a call behind you- pretty clear sign that you don't have the best hand; 3. Given that you were probably beat, you are getting incorrect odds to call even if hitting a king of jack will give you the best hand; 4. If you thought that you still had the best hand, you needed to reraise- you made the mistake of betting to little the first time around, and now they were giving you a chance to punish them. So, I believe that folding is the best play here, reraising a distant second, and calling an even more distant third.
Mistake #3: Rolling over and playing dead. On the turn and river, by check-calling, you might as well just give him the pin code to your ATM card. I can see how the villain, sandwiched between the two of you, might bet with something other than a set, because even on a draw, after taking control of the hand after the flop, he's not going to check the turn when there's someone left to act behind him. If that's what you were thinking at the time, hey, at least you're thinking, but if that was the case, you were probably out-thinking yourself and ignoring the rest of the signs going on here. He bet small enough because he wanted action (though he wanted you to make a mistake, even if you were on the flush draw). Most big bluffers would have put you all-in on the turn. Since you and the other opponent each had less than two times the size of the pot, putting you both all-in would have been a likely play if he was trying to buy the pot.
In the end, you got stacked off with a hand that you shouldn't have played in the first place. My suggestion is to remember this hand. Keep it in your head as a reminder that those are hands that you probably want to stay away from in the first place.
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