Recently, the turbulent Northern Securities have successfully reached the peak of "mowing the leeks" (a metaphor for inexperienced investors being taken advantage of in the market).

In just one week, the maximum decline was 17.3%, a veritable leek harvester.

Especially for investors who bought the Northern Securities 50 Fund last weekend, the net value shrank by about 16% in a week.

I have been following the Northern Securities for over a year, and for this craze in the Northern Securities, I can only sigh.

Investing is like this; sometimes the market comes too suddenly, and when you really get on the train, you find it's a huge trap.

But essentially, investing in the Northern Securities is actually full of opportunities.

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This is also why I have been paying attention to the Northern Securities for a long time and choose to invest in the Northern Securities at a low position.

Today, I am sharing some logic about investing in the Northern Securities for your reference.

1. The status of the Beijing Stock Exchange.Beijing Stock Exchange, or "Beijing Securities" for short.

In the eyes of many, the Beijing Stock Exchange may not seem significant, especially when compared to the Science and Technology Innovation Board, it's like a small fry in front of a giant.

Therefore, many people are accustomed to treating the Beijing Stock Exchange as a trading board, just a board with a 30% fluctuation limit.

And the threshold of 500,000 yuan also makes ordinary retail investors indifferent to the Beijing Stock Exchange, because there is not much participation.

But the status of the Beijing Stock Exchange itself is an exchange, which is consistent with the Shanghai Stock Exchange and the Shenzhen Stock Exchange.

The Shanghai Stock Exchange has a market value of 47 trillion yuan, the Shenzhen Stock Exchange has 32 trillion yuan, and the Beijing Stock Exchange has more than 300 billion yuan, which is less than 1%.

It is very clear that the development space of the Beijing Stock Exchange is very large, even if it is difficult to catch up with the Shanghai Stock Exchange and the Shenzhen Stock Exchange, but having a volume of 10% is also normal, right.

Then, from the perspective of market value, the development space of the Beijing Stock Exchange is at least 10 times.

The status determines that the Beijing Stock Exchange will not be neglected by the market for a long time, and this round of malicious speculation is the first shot, laying a foundation for the future.

2. The valuation level of the Beijing Stock Exchange.The valuation level of the Beijing Stock Exchange (BSE) is, in fact, "elusive and complex."

Why use this term to describe it? Because the valuation of the BSE is neither too high nor too low.

Take the current price-to-earnings (P/E) ratio of about 20 times and the price-to-book (P/B) ratio of less than 2.5 times on the BSE as an example.

The overall valuation level of the BSE is not very high.

Compared to the Shenzhen Stock Exchange, it is somewhat lower, and compared to the Shanghai Stock Exchange, it is slightly higher.

The valuation itself depends on the underlying listed companies. The companies originally listed on the BSE were all transferred from the New Third Board.

The growth potential of these companies is relatively concerning, which is also the reason why the valuation of the BSE is not too high.

Why is there still room for the valuation of the BSE?

Because the newly listed companies on the BSE have started to benchmark against those listed on the Science and Technology Innovation Board (STAR Market), with more innovation.

Once benchmarked against the STAR Market, the current P/E ratio of only 20 times on the BSE seems very cheap, and there is a great deal of room for imagination upwards.So, the issue of the valuation level of the Beijing Stock Exchange (BSE) is a problem, yet it is not a problem, mainly depending on the direction of development.

3. The liquidity issue of the Beijing Stock Exchange.

The liquidity of the BSE is a significant issue.

However, the high threshold is also reasonable because the risks are considerable.

Both the Science and Technology Innovation Board (STAR Market) and the BSE have poor overall liquidity, which is also a major factor for their inactivity.

But if retail investors' funds are allowed to intervene, the market will inevitably enter a crazy period, and ultimately, the retail investors will still be the ones who suffer.

After all, the 30% limit on price fluctuations can easily turn this investment place into a casino.

Therefore, the liquidity issue of the BSE, under the control of risk management, will definitely not be very good.

At least in this immature period, the BSE is unlikely to allow a large amount of funds to enter the market for malicious speculation.

Given that the liquidity issue of the STAR Market has not been resolved, the BSE is likely to be further back in the queue.Of course, it is also possible to follow the practice of the Science and Technology Innovation Board (STAR Market) by issuing index funds to take over the market.

In addition to the well-known Science and Technology Innovation 50 (STAR 50), there are also funds such as Science and Technology Innovation 100, Science and Technology Growth, Science and Technology Chip, and there may be Science and Technology Medical in the future.

The Beijing Stock Exchange (BSE) only has the Beijing Stock 50, and there is no exchange-traded fund (ETF) in the market yet. From this perspective, injecting liquidity is relatively convenient.

4. The direction of BSE IPOs.

The future direction of BSE IPOs is the key to determining the fate of the BSE.

The positioning of a stock exchange is not based on the rise and fall of the exchange itself, but on whether there are high-quality listed companies.

The most significant impression of the ChiNext (Growth Enterprise Market) is actually Ningde, and for the Shanghai Stock Exchange, it is Moutai.

Any stock exchange, any sector, will eventually have representative listed companies.

And putting high-quality listed companies into a stock exchange will also revitalize the vitality of the exchange.

This is like the Hong Kong stock market, no matter how poor the liquidity is, there will always be funds buying Tencent.If the stocks listed on the Beijing Stock Exchange (BSE) are all from the New Third Board, how different would it be from the New Third Board market itself? When it comes to the initial public offerings (IPOs) on the BSE, if they are all high-growth technology innovation companies, the direction of the entire market will change.

What determines the future trajectory of a stock exchange is the underlying companies, not just policies and capital.

The BSE bypassing the rules for listing on the Third Board actually indicates the new direction of the BSE's future IPOs.

5. Investment strategies for the BSE.

Regarding investment strategies for the BSE, they have actually been in place for quite some time. Gradually progress and seek opportunities during the expansion.

Expansion has two aspects: one is the expansion of IPOs, incorporating more and more stocks of listed companies with development potential. The other is the expansion of capital, attracting more funds with investment intentions to enter the market.

Retail account opening is only a small part of the proportion, and it is more likely to start from the level of thematic funds and index funds.A market with a market capitalization of less than 400 billion is currently unable to attract large capital to invest.

But if the market capitalization reaches a trillion, with a liquidity of 10%, it can accommodate funds at the scale of hundreds of billions, then large capital will enter.

Therefore, the investment strategy must be to lay out at a low position and wait patiently.

By using index funds, one can already screen a group of relatively high-quality listed companies, and then buy in batches at a low position.

What is a low position?

Although there is no specific definition, the Northern Exchange Index below 800 points is considered a low position.

At this position, slowly increase the chips in your hand through the method of fixed investment, waiting for the expansion of the Northern Exchange, and dynamically observe the situation.

If the market does not change fundamentally, there is no need to chase high to buy the Northern Exchange.

Because in a market with not much liquidity, chasing high means being harvested as leeks.

Whether it is the Northern Exchange, the Science and Technology Innovation Board, the Growth Enterprise Market, or the previous SME board, the principle is the same.Translate the following passage into English: Any plate has opportunities, not to mention such a large and important exchange.

However, the investment cycle, investment strategy, and investment method are definitely not as simple as imagined.

It's not just chasing highs and buying in a few days that can make money safely and steadily.

Investment focuses on strategy, not blindness. If following the trend could make money, then there would be no one losing money in the stock market.