The English method is the most common style of knitting in the english-speaking world. In the English method, the working yarn is held in the right hand. How you hold the yarn is up to you, as long as you can maintain even Gauge. One of the more common methods is to weave the yarn over and under the fingers, as seen below:
Other variations include the position depicted above, while wrapping the yarn around the pinky finger once, wrapping the yarn around the pinky, and over the index finger only, etc. Whatever the position chosen, the key is to select a method that's comfortable and allows you to provide even tension on the working yarn.
The Knit Stitch
The Knit stitch is performed by holding the working yarn behind the needles.
The Purl Stitch
The Purl stitch is performed by holding the working yarn in front of the needles.
The English method is generally considered to be slower than the Continental method. This makes sense, as there is a fair bit of arm movement necessary to form new stitches. However, English method knitters generally create materials with fairly even Gauge. Moreover, this method is easier for those who are strongly right handed.