What type of paint should you use on a wooden shed?

If it's decent wood then why not stain it in a red reddish brown (if it suits your home and yard.) If not, then oil is the best. Latex is water-based so won't stand up as well.

I work in a paint store, and I can assure that a quality acrylic latex will far outlast an oil based exterior paint. Oil based paints will fade and chalk outside in a matter of months. On wood they are also likely to crack due to inflexibility. Acrylic latex paint will hold their color much longer and are much more flexible than oil based paints. I recommend you use a 100% acrylic latex satin/ low sheen. To reply to the previous poster, Latex paint is actually waterbourne, meaning water is the solvent that dries out of the paint film. Once the product has cured, there will be no water left in the film. Plus acrylic products are much safer for the user, and easier to clean up. If you have any further questions, I recommend you go to a paint store. Not a Home Depot or lowes. Go to a paint store where the employees are trained to help you. Not someone from lawn and garden called over to help out.