I must disagree with the first and second sentences, and the third sentence is exactly what I am doing. Bidding early on an item encourages those who are perhaps merely watching, to start bidding, and can also really set off those who are in it for the win. Early bidding is great for the sellers, indeed, as it tends to drive up the final price. Of course, some discipline is required to not enter the late-and-only bid if others have already bid the item to a point higher than its real value.

To enter my maximum intended price too early just gives opposing bidders an early warning that there is another bidder out there. Better for me to determine my max price, check the item late in the auction period, and if my price has yet to be reached, bid in the last few seconds. That way, I don't pay too much, and I don't show my hand too early in the poker game.