We use a lot of our own jar­gon on the show as a heuris­tic for com­mu­ni­cat­ing com­pli­cat­ed invest­ing con­cepts.

Here’s a quick overview of some of the most com­mon terms. More details expla­na­tions can be found in the Club Mem­ber Resources, like the QAV Course and the QAV Bible.

1. Josephine: a stock whose share price has fall­en below the price it was at the end of the pre­vi­ous month, and is cur­rent­ly still below its Sec­ond Buy Line (2BL). We don’t buy stocks if they are a Josephine or if their under­ly­ing com­mod­i­ty (eg a gold min­ing stock­’s under­ly­ing com­mod­i­ty is gold) is a Josephine. We wait until the price goes above a sec­ond buy line.
2. Rule 1: a sell trig­ger (ie some­thing that caus­es us to sell a stock) that is acti­vat­ed when the price of a share drops below 10% of what we paid for it.
3. 3PTL: anoth­er sell trig­ger which is deter­mined by using a Three Point Trend Line.
4. Pos­si­bles: Some­times there are stocks on our buy list that pass all of our met­rics, but we can’t buy them for our Light port­fo­lios because either a) we already own two parcels of them (which is our self-imposed lim­it to avoid over expo­sure) or b) their Aver­age Dai­ly Trade isn’t high enough to allow us to buy a sec­ond par­cel (anoth­er self-imposed lim­it to avoid being stuck try­ing to sell the shares if their price sud­den­ly col­laps­es). How­ev­er, we are aware that not all Light mem­bers will already own these stocks (per­haps because they became mem­bers after we bought the stock), so I add them to our “Pos­si­ble Buys” track­ing port­fo­lio and noti­fy Light mem­bers that they are a pos­si­ble buy, but we won’t be adding them to one of our offi­cial port­fo­lios. Instead we add them to a spe­cial watch port­fo­lio and will advise mem­bers when they become a sell based on our usu­al sell trig­gers.
5. Bret­ta­la­tor: A tool devel­oped by one of our mem­bers (Brett) that draws the 3PTL and cal­cu­lates the buy and sell prices for any stock.