A location step has three parts:
The axis
The node test
An optional predicate
axis::node-test[predicate]
child::PERSON[position()=2]
The axis tells you in what direction to search from the context node.
The node test tells you which nodes to consider along the axis.
The predicate is a boolean expression that tests each node in that set. If that expression returns false, then the node is removed from the set.