The CAGED system refers to the chord shapes in open position, you have your C chord, A chord, G etc etc. The easiest chord shapes to move up the fret board are A E and D.

If you move the shape up a fret, then where you have open strings in the open position, you play them with your first finger barred across the strings, meaning you have to use different fingers to play the chords.
Quote by uvq
yeah fire him secretly... thats what im doing except im firing myself and secretly joining someone elses band

Quote by Jekkyl
If you get a virus by looking at porn, is it considered a sexually-transmitted disease?

Quote by DiveRightIn63
thanks for the compliment man!
start at postion 1 work up? try to make up progressions? learn songs and instead of using open shapes find the at positions on the fretboard? or listen to what the next guy says?
Find your root notes, and learn its relationship with other notes on the fretboard. CAGED basically gives you an easy shape to remember.
Oh yeah.

Quote by hildesaw
A minor is the saddest of all keys.

EDIT: D minor is the saddest of all keys.