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Penny auction, aka, penny bid has obviously become a very successful business idea. There are more and more penny auction sites going live on the Internet everyday. Each of these sites have its own different rules which may or may not be at your advantage. You probably want to read a penny auction sites review before you dive in. After you study and compare their rules, let’s look at the things you want to bear in mind before placing your first bid in the penny auctions.

You need to equip your self with this simple concept: there will always be the same item up for bid later – you don’t have to win now! It is just a game! Winning is not determined by 1 game. There are too many games to play. Nobody can win every game. Don’t play if you don’t have time.

It is obvious that since each bid costs you money, you want to place as few bids as possible. A universal rule of these auctions is that time, usually about 10 seconds) is added to the clock when a bid is placed near the clock expiration. So you NEVER want to place any bid until there are only a couple seconds left! It is totally meaningless to bid with 1 minute left. Don’t be the sucker. You don’t just lose money – you make yourself look bad too! This simple rule can be hard to follow if you are too anxious.

Now since you are not anxious to click your mouse, you have time to observe. You can see the ball park of the final bid of the item you are interested in, for example, Apple iPad. Why is the final bid at, for example, $40? Given the retail price at $500-$700 depending on the specs, how much are you willing to pay for a “deal?” If the item often ends at $40, people might be reluctant to bid much higher thinking there is another chance later. Bidders might run out of money/bids too. $40 is around 8000 bids. If there are 10 bidders, each bidder would have spent 800 bids which range from $400-$800. If you pay $400 for a $500 iPad, it doesn’t seem like a “ridiculous deal” anymore. You can observe and find out the number of bidders in previous auctions for the same item.

So what you can do is to wait until the item is close to the price range to start placing your bids. At that time, other bidders are close to exhaustion in both money and energy.

A lot of penny auction sites have some kind of auto-bidding program. A lot of the programs though cannot be stopped once the auction starts. These bidding bots though always place bids whenever there is a
counter bid. This is quite a dangerous way of bidding. I strongly believe the auto-bidding bot is a bad idea unless you have plenty of bids in your bank (e.g., you have won a lot of bidding packs).

The game is for 3 types of people – people that have more time than money, people that like excitement, and the 3rd type – dummies. Whatever you do, don’t be the 3rd type! You can enjoy the excitement without emptying your pocket.

Now you can head over to the penny auction sites review, study the comparison, and pick your favorite auction site to start.