Trying to react to others' bids is not a good strategy in an online auction such as eBay's. If a bid comes in late enough, you will not have enough time to bid again. There is no guarantee you will have the last bid -- or that you will be able to submit a second bid at all. Do not count on a second bid. Make your first bid count.
There is no need to wait for others to bid and then respond -- decide in advance the most you are willing to pay, taking into account any shipping and taxes, then bid that amount once, as late in the auction as you are comfortable with. If the number is a round amount, consider adding a few cents to decrease the likelihood of a tie which would go to the earlier bidder.
The winning bidder in a no-reserve auction winds up paying up to one increment above the second highest bidder's amount in all cases.
Due to that, there is no real benefit to bidding less than the maximum you are willing to pay. Bidding less than your maximum just leaves you vulnerable to a late bid that can win the item for a price you would have been willing to match or beat.
Reactive bidders bid for a bargain hoping to win; snipers bid to win, hoping for a bargain.
