How to Invest in the Japanese Stock Market (6 Steps)

Get familiar with the three major indexes used to track developments in the Tokyo Stock Exchange. These are, first, the Nikkei 225 index of major companies as chosen by Japan's most popular business paper, the 'Nihon Keizai Shimbun.' The second is the TOPIX index, and the J30 index is also commonly used to track Japanese big business.
Open a trading account with a large, well-known brokerage. To invest in the Japanese stock market, your order will have to be routed to a licensed member of the Tokyo Stock Exchange. Larger brokerages have the best and most reliable access to TSE members.
Deposit capital into your new trading account, keeping in mind that it is unwise to place all your eggs in one basket. Make sure you have a contingency fund in place to cover your back in the event you lose your shirt in the Japanese stock market.
Work with your financial adviser to identify Japanese companies that you want to invest in. If you prefer to do your own digging, a good place to get started is on the Tokyo Stock Exchange's official English-language website (see Resources below).
Research Japanese companies using the same methods you would use to research domestic companies. If you have no experience researching stocks, pick up a comprehensive introductory guide to stock investing from your local bookstore and spend some time reading before you head into the real world. Keep in mind that it may be difficult or costly to obtain copies of Japanese companies' financial statements.
Place an order to buy the Japanese stock of your choice with your brokerage. Your stockbroker will then forward your request to a Tokyo Stock Exchange member for filling. The time delay involved may mean that the actual price of the stock could differ from your quote by the time your order is actually processed.

How to Buy a New Issue Stock (5 Steps)

Buy new stock issues if you are an aggressive trader. New issue stock refers to stock offered for the first time in the market. It is also referred to as an initial public offering. An existing public company offering of stock is called a secondary stock offering.
You may wish to alert your broker that you intend to buy new issue stock. Brokers have regular access to new issue deals, but the lead manager of the offering controls where most of the stock goes. Deals come very quickly, and hot or strong deals have many indications of interest. You may be asked to increase your order knowing your order will be cut back sharply.
New issue stock for strong deals is usually allocated to the best clients of the firm. Some firms demand a lockup period of several days or weeks before you can sell the stock. If this is the case, it not wise to deal in new issues with this broker.
The managers of the deal will give a range of price for the stock offerings. The earlier you commit to a stock, the greater chance you have of getting it. If the deal is not strong, the broker should talk to his underwriters and advise you. Deals are usually very volatile and subject to heavy volume and churning by day traders.
Purchase stocks for $10 per share or more. Stocks below this price are usually intended for penny stock traders and uninitiated investors. Stay away from these stocks. Successful new issues demand institutional support. In addition, if the stock is moving up in price with strong volume and then retrenching in light volume do not sell the stock. This pattern is indicative of a healthy stock with continuing good technical strength.