I would interpret that as being the 3rd stitch.
But ultimately, I don't think it really matters (2nd or 3rd). The concept is just to have it near the edge to help hide it under the sleeve. If the first stitch is a selvedge/being slipped it might be easier to do the decrease on the 3rd stitch. If you're working a pattern/cable then put it where it is most convenient.
Last edited by RochesterKnitter : 05-21-2013 at 06:33 PM.