I hold mine at a 35 degree angle, approximately one inch from the tip, and the pen shell itself rest snuggly on the callous of my middle finger, and is controlled by my thumb and pointer finger. While not writing I usually twirl it around or rest it on my thumb, middle finger, and held in place by my second, or on the ear, usually if I'm yelling at my friends, this is what I do.

I am a righty, and my handwriting is somewhat fine and distinguishable, but small... extremely small. It's smaller than the text that Rye uses. I prefer a medium tip pen to a fine one. Unfortunately, most of my teachers are left handed, so there's no way I could match what they do.

I don't believe that there is a correct way to hold a pen, because it varies from person to person: you just have to do what feels right. Of course, I highly doubt someone would find it very good that someone else held it at the end in a fist, and moved the head so that ink lines would appear.