Steversteves

SPY: Deconditioning the Conditioned

AMEX:SPY   SPDR S&P 500 ETF TRUST
Let me tell you about this really interesting Russian guy.
Ivan Pavlov. Have you heard of him? Great.

Well what this interesting character did was discovered something called conditioning. Commonly referred to as classical conditioning today. He had some pompous words he used to refer to this but that's neither here nor there.

And what was this classical conditioning? Well friends, let me tell you. He would ring a ding-ding a little bell and reward poor, unsuspecting dogs with a treat.
The dogs would hear the noise. See the treat. Slobber all over everything and then demolish the treat like it was a steak from TGIF.

And he noticed, after doing this many times over a relatively short duration of time, each time the dog heard the bell, they would immediately start salivating and rushing for that treat.


What is the relevancy here, you may ask? Well, let me show you.



But wait! There is more!

Pavlov also found that he could ring-a-ding ding his little bell, and those little poochies still came a slobbering, even in the absence of treats. And he would keep ringing that little bell, Fido would anxiously wag his little tail and come running to him, only to be met with complete disappointment and utter let down. But alas, each time he rang that bell, they returned. Slobbering and eager for that last little treat.

And so what is the relevancy with this?



So friends, let me ask you. Should we be running to this bell for our treat? Or are we wiser than those poor, innocents puppies whose spirits were crushed by their master?


I have some ideas but I think for today I will leave it off on this cryptic post as some food for thought.
I am interested in hearing other people's perspective, so share your thoughts below!

I will share my thoughts tomorrow.

Take care everyone, trade safe!

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