It is all about moneyball. There is a sweetspot for each position in terms of value - typically you are better off getting WRs and TEs at about half the value of the top guys.
I am using the 200 dollar format as reference, if you pay 20 for 2 WRs and a TE, you usually get better performance than paying 40 for a top WR and 10 for a number and a TE.
You have to know the other players, if there are fans of a specific team they may drive up prices on players from that team - for instance a couple of GB fans can drive up the price of Randall Cobb or Aaron Rodgers. If it is balanced or all are fans of the same team this doesn't apply.
Nominate the most expensive player you don't want that much every time, that way others will tend to overspend early leaving you with choices in the middle of the draft. If there is a run on guys like Adrian Peterson, Foster, Megatron, Rodgers, Brady, Brees, Gronk a lot of people are going to be spending a lot money which will make them a bit shy for a while.