A story written in first person is usually from the point of view of the main character, but may use a narrator who is present in the story and watches the events unfold. If it is in the main character's viewpoint, there is an undeniable bias in the story based on the main character's role in the events. A narrator may or may not participate directly in the events of the story. In either case, the story might not be the objective truth, and the reliability of the narrator or character may come into question. This point of view uses "I." For example, "I watched as Catherine walked away."
Second person narration, rarely used in books with the notable exceptions of self-help and choose-your-own-adventure tales, is difficult because maintaining the consistency of the voice throughout the piece is tricky. Also, placing the reader in the story destroys the "escapism" many readers turn to books to enjoy. In the second person point of view, the writing addresses "you," as in "You wake before the sun comes up." This style of point of view makes the reader the subject of the story. This often creates an intimate atmosphere in the writing but may also come across as lecturing.
Third person is the most common point of view. In third person, the narrator is not a participant in the story. This style uses the pronouns "he" and "she" as well as names and tells the reader how the characters feel about the events unfolding. For instance, "Amy knew what she did was wrong." Third person may use a single viewpoint, such as a main character, or multiple viewpoints giving more than one character's side of the story. When using multiple viewpoints, limit viewpoints to no more than three or four and be careful not to change viewpoint within a scene.
There are three types of third person-- objective, limited omniscient and omniscient. In objective point of view, the narrator is a detached observer giving only facts which he observes in the setting, situation or dialogue. This point of view never gives the characters' thoughts or feelings. In limited omniscient point of view, the audience has knowledge of the thoughts and feelings of only one character, usually the main character. In omniscient point of view, the audience knows everything about every character. This is usually the case with stories that use multiple points of view.