Do you think profiting in both bull and bear markets is hard? It’s not, but you have to know the right strategies.
This guide breaks down exactly how to profit in all market conditions.
It covers the basics of bull and bear market strategies, explains advanced techniques, and dives into risk management.
You’ll also learn about diversifying your portfolio, using financial tools, and analyzing market trends.
By the end, you’ll be prepared to thrive no matter what the market does.
How to Make Profit in Bull and Bear Markets
- Learn what defines a bull and bear market
- Understand basic strategies for making money in different market conditions
- Practical steps for buy and hold, growth stocks, short selling, and defensive stocks
Understanding Bull and Bear Markets
Bull Markets: Definition, Characteristics
A bull market is when stock prices are rising or expected to rise. Typically, it happens when economic conditions are strong, and there’s high investor confidence. You see increasing GDP, low unemployment, and consumer spending growth. For instance, the bull market from March 2009 lasted over a decade, showing the power of sustained growth.
Bear Markets: Definition, Characteristics
A bear market occurs when stock prices are falling, usually defined as a decline of 20% or more from recent highs. This typically aligns with economic downturns, rising unemployment, and declining consumer spending. Take the 2008-2009 financial crisis—a textbook example of a bear market triggered by a major economic hit.
Basic Strategies for Bull Markets
Buy and Hold: How It Works
Buy and hold is simple. You buy stocks and hold them for a long period, regardless of short-term fluctuations. This strategy is effective because it leverages the general upward trend of markets over time.
- Identify Strong Companies: Focus on companies with solid financials and a history of growth, like Apple or Google.
- Stay the Course: During short-term volatility, resist the urge to sell. The key is patience.
- Evaluate Periodically: Review your portfolio at least annually to ensure the companies still meet your criteria.
Growth Stocks Investment: What to Look for
Growth stocks tend to outperform in bull markets. These are companies expected to grow faster than the market average.
- High Earnings Growth: Look for annual growth rates of 15% or more.
- Innovative Products: Companies introducing new technologies, like Tesla, are prime examples.
- Strong Market Position: Aim for market leaders with competitive advantages.
- Track Financial Metrics: Focus on revenue growth, earnings per share (EPS), and return on equity (ROE).
Basic Strategies for Bear Markets
Short Selling: How It Works
Short selling involves borrowing shares and selling them, hoping to buy them back at a lower price. It’s risky but can be profitable.
- Find Overvalued Stocks: Identify stocks you believe will decline in value.
- Borrow and Sell: Borrow the stock from a broker and sell it at the current price.
- Buy Back Later: When the stock price drops, buy it back and return it to the broker, pocketing the difference.
Defensive Stocks Investment: Safe Bets
Defensive stocks provide stability during market downturns. These are from sectors like utilities, healthcare, and consumer staples.
- Stable Earnings: Look for companies with consistent earnings, like Procter & Gamble.
- Dividends: Companies that pay dividends are often more stable.
- Non-cyclical Demand: Goods and services people need regardless of economic conditions. For example, Johnson & Johnson (healthcare products).
In both bull and bear markets, understanding the characteristics and employing the right strategies is key to making profits. By using these methods, you can navigate market conditions effectively and secure your financial position.
Investing During Market Volatility: Advanced Techniques
- Maximize returns through diversification.
- Mitigate risks with structured plans.
- Navigate trends with technical analysis.
Diversifying Your Portfolio
Diversification means spreading investments across different assets. This technique reduces risk. If one asset class fails, others may succeed, balancing overall performance.
Importance of Diversification
Diversification isn’t just about owning different stocks. It’s about owning different types of assets with varying levels of risk and return. When done correctly, diversification can lead to higher returns and a more stable portfolio. According to the S&P 500 Index historical data, the standard deviation of market values is an indicator of volatility, demonstrating how prices can fluctuate significantly. This variability underscores why it’s essential to spread investments across different asset classes to reduce risk.
Different Ways to Diversify
To diversify effectively, combine stocks with bonds, real estate, commodities, and other assets. Another approach is to invest in different sectors and geographic regions. For instance, combining U.S. stocks with international stocks can help. ETFs and mutual funds are also effective tools for diversification as they inherently pool different assets into one investment vehicle.
Dollar-Cost Averaging
Dollar-cost averaging (DCA) is a technique where you invest a fixed amount of money regularly, regardless of market conditions. This can reduce the impact of market volatility by averaging the purchase price over time.
Explanation and Benefits
By investing the same amount regularly, you buy more shares when prices are low and fewer shares when prices are high. This approach can lower the average cost per share over time. DCA is particularly useful during volatile markets, as it mitigates the risk of investing a large amount at an inopportune time. It’s a disciplined investment strategy that can lead to better long-term outcomes.
Using Stop-Loss Orders
Stop-loss orders are automated orders to sell a security when it reaches a particular price, helping to protect investments from significant losses.
Protecting Investments
With stop-loss orders, you can set a specific price at which you’d like to sell a stock to prevent further losses. For instance, if a stock is purchased at $50, you can set a stop-loss order at $45. If the stock price drops to $45, the order will automatically execute, thus limiting your loss to $5 per share. This preemptive measure is especially useful in volatile markets where prices can drop rapidly.
Technical Analysis Strategies
Technical analysis involves evaluating and predicting future price movements based on historical data. This strategy can help identify trends and patterns in market movements.
Identifying Trends and Patterns
Using charts and other tools, investors can spot recurring patterns that indicate future price movements. For example, support and resistance levels are crucial in technical analysis. Support is a price level where a stock tends to find buying interest, while resistance is where it finds selling interest. Recognizing these patterns can help in making informed buy or sell decisions.
Further Reading on Technical Analysis
For those interested in diving deeper, books such as “Technical Analysis of the Financial Markets” by John Murphy provide comprehensive insights into the subject. This book covers various technical indicators and how they can be used to forecast market movements.
Historical Market Volatility
Volatility is a key consideration when investing. The S&P 500 Index has shown significant volatility over decades. Understanding this history can guide investment strategies.
Understanding Historical Data
Analyzing historical volatility data can help investors understand the standard deviation of market values, which indicates how much prices can fluctuate from the average. For example, during the 2008 financial crisis, the stock market experienced extreme volatility. However, those who stayed invested often saw higher returns in the long term compared to those who moved investments to safer options like cash.
Incorporating these advanced techniques into your investment strategy can help navigate the complexities of market volatility. Diversification, dollar-cost averaging, stop-loss orders, and technical analysis are all valuable tools that, when used effectively, can lead to more stable and potentially profitable investment outcomes.
Stock Market Trading Strategies to Consider
- Swing trading offers a way to profit from short-term market moves.
- Options can hedge risks in uncertain markets.
- ETFs and mutual funds provide diversified, measured exposure.
Swing Trading in Volatile Markets
Swing trading captures price movements over short to medium time frames. This method uses technical analysis to identify buy and sell points.
How Swing Trading Works
Swing traders use support and resistance levels to pinpoint entry and exit points. They manage risk through stop-loss orders. By focusing on short-term market shifts, they aim to capitalize on smaller, yet frequent, price changes.
“Watch the market leaders.” – Jesse Livermore
Technical tools like moving averages and momentum indicators are essential. For those new to this strategy, reading “Swing Trading for Dummies” by Omar Bassal can offer foundational insights.
Options Trading for Risk Management
Options trading provides a method to hedge risks, especially in uncertain markets.
Using Options to Hedge Risks
Options grant the right, but not the obligation, to buy or sell a security at a predetermined price. By using options, investors can protect their portfolios against adverse movements without the need to sell off holdings.
For instance, protective puts insure against declining asset prices, while covered calls can generate additional income. A real-world example is buying put options in anticipation of a market downturn, securing a selling price to minimize losses. The book “Options as a Strategic Investment” by Lawrence G. McMillan is invaluable for diving deeper into complex strategies.
Leveraging ETFs and Mutual Funds
ETFs and mutual funds are tools that offer diversified exposure, balancing risk and return.
Benefits and Risks
ETFs provide diversification by pooling assets, making it easier to hold a varied portfolio. Mutual funds also offer this benefit but are actively managed. The advantage here is professional oversight. However, both come with their share of risks.
The primary risk lies in market fluctuations affecting the entire fund. Additionally, ETFs might carry lower fees compared to mutual funds. The liquidity of ETFs means they can be traded like stocks, providing flexibility. To understand these instruments better, consider reading “The Little Book of Common Sense Investing” by John C. Bogle.
Value Investing in Different Market Conditions
Value investing focuses on finding undervalued stocks in varying market conditions.
Identifying Undervalued Stocks
The essence of value investing lies in identifying stocks trading below their intrinsic value. This often involves a deep dive into company fundamentals, assessing metrics like P/E ratios, book value, and dividend yields.
Warren Buffett’s approach emphasizes long-term holding periods. He suggests: “If you aren’t thinking about owning a stock for 10 years, don’t even think about owning it for 10 minutes.” Books such as “The Intelligent Investor” by Benjamin Graham are excellent resources for mastering value investing principles.
AI-Driven Trading Models
Integrating AI in trading can refine strategies and enhance decision-making processes.
Enhancing Accuracy with AI
AI tools can analyze vast datasets quickly, identifying patterns and trends that might be invisible to human traders. For example, AI can enhance swing trading by detecting volume spikes and executing trades at optimal times.
AI-driven models offer precise risk management, reducing human error. By consistently analyzing market sentiment and technical data, AI can streamline trading decisions. “Artificial Intelligence in Finance” by Yves Hilpisch provides comprehensive coverage of AI applications in trading.
Books and resources mentioned in this section serve as a foundation for those wishing to delve deeper. Combining theoretical understanding with practical application enhances trading strategies and risk management.
Remember, consistent learning and adapting strategies to market changes are crucial in leveraging these methods effectively.
Risk Management in Bull and Bear Markets
- Goals direct your investments.
- Emergency funds protect your finances.
- Rebalancing keeps risks in check.
Setting Clear Investment Goals
Clear investment goals make your financial path structured. Goals define where you’re headed and how to handle various market conditions. Start by being specific. General desires like “I want to be rich” won’t help. Instead, detail your goals. For example, aim for a 6% annual growth rate over the next decade. Your goals should be measurable and realistic, reflecting your risk tolerance and timelines.
Reference the work of financial experts like Benjamin Graham. His book, “The Intelligent Investor,” provides insights into setting sensible financial goals. Graham’s emphasis on long-term planning is crucial for effective goal-setting. For additional context, examining historical market trends can help. You can check how often markets have met or missed targets similar to yours. This helps to set realistic expectations and adapt strategies accordingly.
Maintaining an Emergency Fund
An emergency fund is essential. It covers urgent expenses if investments go south. Financial advisors recommend keeping enough to cover six months of expenses. This isn’t just about security; it’s about having the flexibility to not sell investments at a loss during downturns.
Dave Ramsey’s “Total Money Makeover” is an excellent resource. The book outlines practical steps for building an emergency fund. Ramsey argues that having this fund changes your overall investment strategy by reducing anxiety and allowing more calculated moves. With a solid emergency fund, you’re less likely to make impulsive decisions triggered by market volatility.
Rebalancing Your Portfolio
Rebalancing your portfolio is about adjusting your asset allocations to meet your goals. It’s crucial in both bull and bear markets. It ensures your portfolio does not veer off track from your risk tolerance levels. If stocks perform well, your portfolio might become stock-heavy. Conversely, a bear market could lean your portfolio toward bonds.
Advisors typically recommend rebalancing at least once a year. This means selling assets that have performed well and buying those that haven’t, bringing your portfolio back to its original allocation. The “Bogleheads’ Guide to Retirement Planning” is a useful resource for understanding the mechanics and timing of rebalancing. This book highlights how regular rebalancing can help in managing risks and maintaining a balanced risk-reward ratio.
Emotional Discipline in Trading
Emotions often lead to irrational decisions. Fear can cause panic selling, while greed can result in overbuying during bubbles. Remaining disciplined is key to long-term success. Practicing emotional discipline means sticking to your strategy even when markets fluctuate wildly.
A study by Dalbar showed that the average investor often underperforms the market due to emotional decisions. Reading “Thinking, Fast and Slow” by Daniel Kahneman can shed light on why emotions impact decision-making and how to manage them. Kahneman’s insights into cognitive biases can help traders recognize and counteract emotional impulses. This understanding is crucial for making informed, rational investment decisions.
Using Stop-Loss Orders
Stop-loss orders are essential tools for managing risk. They automatically sell a security when it hits a predetermined price, limiting your potential loss. This is particularly useful in bear markets where rapid declines can wipe out gains. By setting a stop-loss, you automate the process and remove emotional decision-making from the equation.
Experts recommend placing stop-loss orders at key support levels identified through technical analysis. Books like “Technical Analysis of the Financial Markets” by John Murphy can help understand these concepts better. Stop-loss orders are not infallible but serve as a critical line of defense against severe losses.
Adjusting Risk Tolerance
Risk tolerance isn’t static; it evolves over time. Your financial situation, age, and market conditions can influence it. Regularly assessing and adjusting your risk tolerance ensures your investments align with your current financial goals and comfort levels.
The “Modern Portfolio Theory and Investment Analysis” by Edwin J. Elton, Martin J. Gruber, Stephen J. Brown, and William N. Goetzmann provides an academic look at how risk tolerance should influence asset allocation. This resource is particularly valuable for understanding more complex risk management strategies and how to apply them.
Paying attention to risk management strategies in both bull and bear markets ensures that your investment portfolio remains robust. This reduces potential losses and enhances long-term profitability. Setting clear investment goals, maintaining an emergency fund, and having the discipline to rebalance your portfolio, retain emotional control, and apply risk-adjusting tactics are steps that pave the way for a firm investment strategy.
Portfolio Diversification Techniques
- Key strategies to balance and grow your portfolio
- How to spread risk across various assets
- Benefits of including international, sectoral, and alternative investments
Asset Allocation Strategies
Asset allocation involves dividing your investment portfolio among different asset categories, such as stocks, bonds, real estate, and cash. The goal is to balance risk and reward based on your risk tolerance, goals, and investment horizon.
Strategic vs. Tactical Allocation
Strategic asset allocation is a long-term approach where you set target allocations and rebalance periodically. Tactical asset allocation allows you to occasionally deviate from your target allocations to capitalize on market opportunities or avoid risks. For further reading, consider “Asset Allocation: Balancing Financial Risk” by Roger C. Gibson.
Using Economic Indicators
Understanding indicators like GDP growth rates, unemployment rates, and inflation can inform your allocation strategy. For example, in high-inflation environments, commodities and real estate tend to perform better. Economists often predict stock market returns using these indicators. A useful resource is “The Intelligent Asset Allocator” by William Bernstein.
International Diversification
Investing globally can reduce risk and improve returns. Different countries’ economies don’t always move in sync, providing a buffer against regional downturns.
Benefits of Global Markets
International diversification spreads investments across various regions, reducing reliance on any single market. This can protect against country-specific risks like economic downturns or political instability. Moreover, emerging markets often offer higher growth potential than developed markets. An in-depth book on this topic is “Global Investing: The Professional’s Guide to the World Capital Markets” by Roger Ibbotson.
Consider Forex Risks
Investing internationally also subjects you to currency risk. Foreign exchange rates can impact the value of your investments. It’s important to diversify currency exposure and consider instruments like currency-hedged funds if you wish to mitigate this risk.
Sector Diversification
Sector diversification involves spreading investments across different sectors of the economy (e.g., technology, healthcare, finance). This balances exposure to sector-specific risks.
Sector Rotation Strategy
Sector rotation involves shifting investments between sectors based on economic cycles. For instance, during economic expansions, investing in cyclical sectors like consumer discretionary can be beneficial. In recessions, defensive sectors like utilities may perform better. To go deeper into this strategy, check out “The Little Book of Sector Investing” by John R. Nofsinger.
Utilizing Sector ETFs
Sector-specific exchange-traded funds (ETFs) provide exposure to various sectors without picking individual stocks. They offer diversification within the sector and are an efficient way to implement sector rotation strategies.
Alternative Investments
Alternative investments include assets like real estate, commodities, hedge funds, and private equity. These assets are less correlated with traditional markets and can enhance diversification.
Real Estate and Commodities
Real estate and commodities like gold and oil can serve as hedges against inflation and market volatility. They provide tangible assets that often react differently to economic conditions compared to stocks and bonds.
Hedge Funds and Private Equity
Hedge funds and private equity offer different risk-return profiles and can generate alpha. Hedge funds employ various strategies to earn active returns, while private equity invests directly in private companies. These investments often require more capital and carry higher fees but can diversify and boost returns. For a comprehensive guide, read “Investing in Hedge Funds” by Joseph G. Nicholas.
“Wide diversification is only required when investors do not understand what they are doing.” – Warren Buffett
This reinforces the need for a thoughtful, informed approach to portfolio diversification.
Considering and implementing these diversification techniques can create a resilient portfolio capable of navigating bull and bear markets effectively.
Supplementary Strategies and Tools for Various Markets
- Utilize financial tools for market insights.
- Learn from market sentiment.
- Engage with investment communities.
- Stay updated with market news.
Leveraging Financial Tools and Apps
Popular Tools for Market Analysis
Understanding the market requires sophisticated tools. Some tools can provide real-time data, predictive analytics, and comprehensive reporting. Here are a few of the most effective:
- Similarweb: It offers traffic information and app intelligence. Pricing starts at $125 per month. It helps analyze web traffic and app performance.
- Glimpse: This tool provides quick survey creation for real-time insights, enabling immediate feedback and trend analysis.
- SurveyMonkey: Known for targeted surveys and global survey panels. Pricing starts at $39 per month.
- CB Insights: Offers market sizing, funding trends, and company data. It’s ideal for enterprise-level market analysis.
- Census Business Builder: A free resource for geographical consumer spending data.
For data crunching:
– Python: A versatile programming language, especially for data analysis and scientific computing.
– Microsoft Excel: A robust spreadsheet program for data manipulation and visualization. Essential for basic to advanced data handling.
– Tableau: Known for its data visualization capabilities with drag-and-drop functionality.
– R: A programming language designed for statistical analysis and data visualization.
Implementing These Tools
- Select the Right Tool: Consider your specific needs. For traffic analysis, Similarweb is excellent. For in-depth surveys, go for SurveyMonkey.
- Set Up and Customize: Create your accounts, set your parameters, and customize dashboards to reflect the data most relevant to your strategy.
- Regular Usage: Make it a habit to check these tools daily to keep abreast of the latest trends and insights.
- Analyze Data: Use data insights to make informed decisions. If you are using Excel, pivot tables and charts can help visualize the trends.
Learning from Market Sentiment
Analyzing Market Sentiment
Market sentiment refers to the overall attitude of investors toward a particular security or financial market. Analyzing sentiment can help in making informed decisions.
- Social Media Analysis: Platforms like Twitter and Reddit can provide insights into investor sentiment. It’s important to follow key influencers and community threads.
- Sentiment Analysis Tools: Tools like StockTwits and Sentimentrader measure the mood of investors towards the market.
- News and Financial Reports: Regularly reading financial news from trusted sources can provide context to the sentiment. Tools like Bloomberg Terminal offer comprehensive news and sentiment analysis.
Steps to Analyze Sentiment
- Collect Data: Use tools to gather sentiment data from various sources.
- Analyze Trends: Look for recurring themes and trends in the data. For example, increased positive mentions might indicate bullish sentiment.
- Correlate with Market Movements: Compare the sentiment data with actual market movements to understand cause and effect.
Participating in Investment Communities
Benefits of Joining Communities
Engaging with investment communities can provide numerous advantages:
- Knowledge Sharing: These communities are excellent for sharing insights, strategies, and experiences.
- Support and Networking: Networking with like-minded investors can provide moral support and potential business opportunities.
- Real-Time Updates: Communities often provide real-time updates on market trends and potential investment opportunities.
How to Join and Engage
- Identify Relevant Communities: Platforms like LinkedIn, Reddit, and dedicated forums have numerous investment groups.
- Active Participation: Regularly engage in discussions, ask questions, and share your own insights.
- Follow Experts: Identify and follow the investment strategies of market experts within these communities.
Staying Informed with Market News
Importance of Staying Updated
Keeping abreast of market news is crucial for making timely and informed investment decisions. Here’s why it’s important:
- Market Movements: Understanding why markets move helps in predicting future trends and planning strategies.
- Regulatory Changes: Being aware of new regulations can prevent compliance issues and provide new investing opportunities.
- Economic Indicators: Indicators like GDP, unemployment rates, and inflation rates influence market conditions.
How to Stay Updated
- Set News Alerts: Platforms like Google News allow you to set alerts for topics or companies of interest.
- Subscribe to Financial Newsletters: Trusted sources like Bloomberg, Wall Street Journal, and Financial Times offer daily insights.
- Use Financial Apps: Apps like CNBC, Bloomberg Terminal, and MarketWatch provide real-time news and updates tailored to your preferences.
By integrating these supplementary strategies and tools, investors can better navigate both bull and bear markets. Leveraging these resources can enhance decision-making, reduce risks, and potentially increase returns.
6. Case Studies: Real-World Examples
Successful Bull Market Investments
- Thriving companies and their strategies.
- Realized gains and growth trajectories.
- Strategic moves during bullish trends.
Profitable Bear Market Trades
- Short sale successes in down markets.
- Strategies that worked in bearish scenarios.
- Case-specific risk management.
Learning from Market Crashes
- Major crashes and recovery patterns.
- Strategic adaptations post-crash.
- Lessons and opportunities identified.
Successful Bull Market Investments
Apple Inc. (AAPL)
Apple’s growth from 2009 to 2020, during the longest bull market in history, is notable. From March 2009 to February 2020, Apple saw its stock price increase over 1,200%. This period saw the introduction of new products like the iPhone, which revolutionized the tech industry. Apple’s ability to innovate was key to its success. Warren Buffett stated, “Price is what you pay, value is what you get.” Buffet’s Berkshire Hathaway holds significant Apple shares, validating this value-focused approach.
Amazon.com Inc. (AMZN)
Amazon’s rise is another textbook example of success in a bull market. Over the same bull market period, Amazon’s stock grew over 2,000%. Diversification into cloud computing with AWS, strategic acquisitions like Whole Foods, and continuous investment in logistics were critical. The company’s aggressive reinvestment strategy highlights the recommendation of constant capital allocation to growth areas.
Profitable Bear Market Trades
The Volkswagen Short (2008)
In 2008, amidst the financial crisis, Porsche engaged in one of the most talked-about short squeezes in history. By acquiring a majority of Volkswagen shares, it forced many short sellers to cover their positions, leading to massive losses for them and huge gains for stakeholders. Understanding market mechanisms and company moves was crucial here.
John Paulson’s Bet Against Subprime Mortgages
John Paulson’s short on subprime mortgages before the 2008 financial crisis is legendary. By using credit default swaps, Paulson bet against mortgage-backed securities and reaped billions when the market crashed. This example underlines the power of deep financial analysis and taking contrarian positions based on solid research. Paulson’s strategy was guided by identifying the overvaluation and structural weaknesses in the housing market.
Learning from Market Crashes
The Dot-Com Bubble (2000-2002)
The burst of the dot-com bubble saw the NASDAQ Composite Index fall by nearly 78%. Companies like Pets.com, which had substantial investments but no solid revenue model, failed to sustain. Key lessons include avoiding overvaluation and the importance of tangible revenue streams.
The 2008 Financial Crisis
Triggered by the collapse of the housing bubble, the 2008 crisis resulted in huge losses for many but also lucrative opportunities for those like John Paulson who anticipated the crash. Rebalancing portfolios post-crash to favor undervalued assets proved beneficial for many investors during recovery.
Real-World Adaptations
Microsoft’s Transformation
Microsoft, traditionally a software giant, reoriented towards cloud computing over the past decade, with Azure becoming a key revenue driver. This adaptation involved significant R&D investment and a shift away from legacy products. The transformation directly contributed to Microsoft’s strong performance in both bull and bear markets.
Toyota’s Resilience
Toyota’s response to crises, including the 2011 earthquake in Japan and the 2008 financial crisis, involved maintaining robust supply chains and focusing on fuel-efficient vehicles. These actions positioned Toyota to recover quickly and continue growing, showcasing the importance of strategic planning and operational resilience.
Further Reading and Resources
For deeper insights into investing specifically during bull and bear markets, you may explore:
– “The Intelligent Investor” by Benjamin Graham.
– “Manias, Panics, and Crashes: A History of Financial Crises” by Charles P. Kindleberger.
– “A Random Walk Down Wall Street” by Burton G. Malkiel.
These books offer valuable lessons from historical market data and contemporary strategies used by successful investors.
The Final Takeaway
Understanding the nature of bull and bear markets sets the foundation. Basic and advanced strategies offer tools to profit regardless of market direction. Diversification and risk management are key.
Use these insights to protect and grow your investments. Start by assessing your current strategy. Incorporate diversification methods where needed. Explore advanced techniques like swing trading and options.
Are you prepared to shift your strategy when the market changes? It’s time to apply what you’ve learned and make informed decisions.