Research your item.  As we mentioned in blunder #1, before you bid on an item, click on that blue advanced search button in the upper right hand corner.  When the next screen comes up, type in key words and make sure you click the completed listings only button.  By doing this, you can find out what your item has sold for from other sellers and you can strategize a maximum price to pay.  Write this amount down somewhere and stick to it.  My tracking sheets (i Buy) have a place for you to do this.

Don't Get Caught up in the Frenzy.  When you get that email that says, "You've been OUTBID", the first thing you want to do is rush right back and bid higher.  Auctions can get extremely competitive, especially when it is an item that you want to purchase for your children or significant other.  Just remember that the item will probably come up for bid again and you don't have to have this one.  Go back and look at the maximum bid that you wrote down when you were thinking clearly and STICK TO IT!  Don't let yourself get out of control.

As an example, I was bidding on an HO Train set for my son.  I had done my research and decided that I should not bid more than $40.  There were a lot of HO diesel train sets available, but I got caught up in the frenzy (because it was going to be a birthday present) and bid up to $64 for a certain one.  At that point, I decided to take my own advice and stop.  I waited a week and got a very similar one for $40.  Don't let you emotions bid for you!