I dont think there is need for a 3rd party because the dems and republicans change with the people.

For example, dems are REALLY pushing socialism and social justice now. Which is why I'm personally turned off by them.

Republicans are becoming more moderate in my opinion.

A third party isnt pushing anything the masses seem to care about or agree with.

The Democrats, socialist? They are neo-liberals to the core. I assume that you're referring to Bernie Sanders and his supporters, but they falsely call themselves socialist. Why, I have no idea, but they are actually social democrats, not socialists.

Sanders refers to himself as a democratic socialist. 

Yeah, and North Korea refers to themselves as democratic.

Well, you said he's a social democrat.  Kind of seems like splitting hairs.

There's a huge difference. Social democracy is a mixed market with capitalism still existing but there being high taxes and many social services in order to try to make sure that there's a minimum standard of living. Socialism is worker's control over the means of production, in other words the employees have control of the company and directly decide themselves what will happen with the fruits of their labour, instead of a top-down system where a CEO and a few other people determine what will happen, which means that taxes and a welfare state are unnecessary as wealth is already evenly distributed so they don't need to be redistributed. I can understand why people would be confused, especially when the right demonizes the term and when the centrists misuse it.

And then what is the distinction between that and democratic socialism?

I'm not sure what the etymology of democratic socialism is, but I assume that it was meant to be for socialists who were against the authoritarian regimes of the Soviet Union, China, etc. and wanted an actual democratic socialist society.