I have always found that showing interest early tends to stir the competitive juices, increasing the odds of a bidding war. Placing max proxy does two things. One is that you open yourself up to shilling. The other is it invites the "pickers", legit bidders who try and find what your max is so they can bid accordingly. These are the guys who will make 20 bids in $1.50 increments.
Now if you bid your max too early, you will notice someone else will do the same, be outbid and increase their max. If you are able to be the last one in, it leaves them no chance to rebid. Thus you save money. And win the item.
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