To quote my favorite knitting author, Elizabeth Zimmermann-
"There are 2 main ways of holding wool so as to form stitches. The first, which I use mainly, is called the German or Continental method, in which you hold the wool over your left forefinger and hook the stitch through with your right needle.
The second, which I use only in color pattern knitting, is called the American or European method, in which you hold the wool in your right hand and wrap (or "throw") the wool under the right needle tip and draw it through to form the stitch.
It matters not one bit which one you use habitually, they both yield the exact same result. If someone gives you a comment that you are knitting "the wrong way," shirk it off and continue on. They are dead wrong. Everyone knits a different way, and all are useful and pleasant.
No matter which one you choose for your main knitting, I strongly suggest you familiarize yourself with both methods, as it will be useful later on when you are knitting color patterns (as in Scandavian, Norwegian, or Fair Isle designs)."
That's always been my opinon, too!