Position 1 is the first four frets, open strings included. Everything in this stage happens here, in one key: E minor, and its relative major, G. They share the same seven notes, E F♯ G A B C D, and the same chords.
The chords of the key that live in position 1 are the ones you already know: Em, Am, C, D and G. The sixth, Bm, needs a barre, so for now B7 stands in for it. B7 is an open chord and pulls back to Em even harder than Bm does (stage 5 explains why).
Em
Am
C
D
G
B7
Try this
Play Em Am B7 Em, then G C D G, four strums each. These two loops are the backbone of the whole stage.
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