Sorry, I didn't explain well enough.
What I meant was, sometimes people forget they used the bid sniping software and enter another bid. Or they bid, then they decide to use the software and they raise their own bids by accident. So it has to be one or the other, you bid manually, or you use the software.
If you use the software you don't have to do anything but wait. Your part is done. 
If you both use the software, the person who is willing to pay the most will win. But that's the way for any auction. That's why you should decide on an absolute maximum and not go over it, and then don't be sorry, even if you're outbid by 50 cents.
In the case you described, if you had used the software it would have continued to bid right up until the very end of the auction, or your maximum had been surpassed. So yes, if you were willing to spend the most, you would have probably won. That's the advantage to sniping software.
Don't worry, you'll get the hang of it.
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Not dumb! I just offered confusing advice!
