When  a writer begins a new story he must decide:

"Who will tell my story?"

An author can tell a story from the first-person point of view.

OR    

The author can use the third-person point of view.

Let's look at both points of view.

 First-person Point of View

 A character in the story is
 the narrator.  This
 character is telling the
 story.  The narrator uses
 the pronouns I, me and
 we.

 In first-person point of
 view, readers learn about
 events as the narrator
 learns about them.

 
Third-person Point of View

 The story is being told by an outside observer - someone who is not in the story.  The author uses the pronouns he, she, and they.

 In third-person point of view, the author can tell about the thoughts, actions, and feelings of the other characters.      

        Third - Person Point of View

 Ted plays on a baseball team.  He loves to  play with his team.  He has a game next week.  His coach thinks he's a good baseball player.

 The princess was locked in the tower. 
 She had no way to escape.  She hoped
 that a prince would rescue her.  Her wish
 came true.  He came and took her to his
 castle.