That actually ties in to another reason not to place early bids but rather wait to snipe at the very end.
Let's say for instance that you're on some rock board and know that fellow board member 'Tommy' has been dying to get a rare copy of a Monkees CD...and suddenly one appears....and soon afterwards you see that 'Tommy' has placed a bid.
Well, you're pissed at 'Tommy' because he insulted your mother and also beat you out on 10 other auctions over the years, so you start to screw with him (he doesn't know your eBay handle) and start placing bids. Well, given the fact that he's been foaming at the mouth about this rare cd for 2 years you just know that, up to a point, he's gonna keep coming back.....so you decide to place a few more bids and up the ante...but not too high......and suddenly just back off.
The auction finally ends two days later and 'Tommy' ends up paying $78 for the disc...but had you not 'intervened', he might have had it for $40?
He telegraphed his interest by placing an early bid and you took the opportunity to mess with him a little. He should have just popped in with a few seconds to go and avoided it.
That was you???? YOU BASTARD!!!!