They go to the cave and explore it to make sure its safe. After confirming, they sit around and talk before going to sleep. Bilbo has a bad dream about the back of the cave opening up. He wakes up to see that it really has opened and goblins rush out; six per dwarf. Bilbo yells and it alerts Gandalf who does magic to attack some of the goblins but its too late. The creatures make off with the dwarves and Bilbo through the opening of the cave before it closes off.

The boys discuss the dark figure more and consider telling someone about it but decide against it as they figure no one would believe them. Tam tells the boys that a gleeman is in town and they get excited to see him.

Forming a habit has 4 steps

1. Cue - The signal that predicts a reward
2. Craving - The desire for the reward
3. Response - The action we take to acquire the reward
4. Reward - The pleasure or relief we feel when we achieve what we desired

This process creates a feedback loop where the reward informs the mind that these steps should be performed again in the future. If any of these steps fail then the habit won't form.

Lists are of two types:

1. Function calls (message "hello")
2. Data:

(car '("one" "two" "three"))
(cdr '("one" "two" "three"))

To use a list as data we prefix it with a single quote '