Law of Substitution
For every second the dog is doing something good is a second the dog is not doing something bad.
By always keeping the dog focused on something in that particular Energy Spectrum the dog will often remain doing a good behaviour.
Example: A puppy is most likely to nip when they are full of energy. If you recognize your puppy is now full of energy and then decide to work on fetch, tug, recall, agility, etc. then you can often divert the dog nipping to a good behaviour without needing to use a consequence. Some dogs will still really want to nip at you so you could provide a consequence like a squirt of Bitter Apple spray to stop them. But by following the Law of Substitution you can often get a dog focused on a good behaviour.
When you want your puppy to be settled, make sure you have exercised them lots first and then they will sleep quietly.