The phrase "text cursor" refers to a small blinking line or shape on a digital screen that shows where you are typing or editing text. It helps you see and control where your next text input will appear on the screen. Full definition
When I try to place the text cursor in between two letters of a word, the arrows at the bottom of the virtual keyboard do wonders. (ubergizmo.com)
I also liked the way Android 3.01 handles text selection: When you tap on text, a slider now appears so that you can reposition the text cursor easily. (computerworld.com)
But on the Torch, the text cursor is actually to the left of the highlighted character — an unintuitive UI decision. (computerworld.com)