By finite tailed, he means that the index of the sum formally defining the $p$-adic expansion has a lower limit:
$$ \frac{a}{b} = \sum_{k\geq n_0} a_kp^k $$
For the rationals, your speculation about finite-tailed meaning no negative powers is "right," in the sense that no negative powers does imply finite tailed. But you could also start from, say, $p^{-4}$ and still be finite-tailed.