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Typically, I check previous auctions of similar items to see what they generally go for. Then I bid my top price based in part on that information and just check back to see if I won.
I usually am looking for something specific when I Ebay and have to bid and lose on 4-5 auctions before I get what I want for the price that I think is fair. A bunch of it is chance, because you never know the sanity of the people who are bidding against you. Some people are not rational.
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