Taiwan stocks usually rise in the winter, meaning that you buy in November and sit back and wait for spring, where you can unload your shares and freeze your gains. However shares have not bounced that much this year, meaning that they a) either will stay in a holding pattern as they are now, or b) take off before Chinese new year.
If I were a foreigner here with a mid- to long term mindset, I would avoid tips handed to me by locals, as they very often trade like crazy, don’t care about any longer term than 24 hrs and don’t pay to much heed to fundamentals etc.
I would stick to trusted and tried names, such as TSMC, UMC, Compal, Quanta, Asustek etc. All those companies are big, have a commanding market position (in the real market, not the stock market) and are likely to be around in 5 years time.
All, who don’t read chinese should stick with big cap shares and have a long-term investment horizon.