The stitch and pink seam finish is quick and easy, but it's really only useful for fabrics that are tightly woven. Fabrics that fray are not a good match for this seam, and knitted fabrics absolutely should not be finished this way (unless you want your project to unravel). With the appropriate fabric, however, this seam finish will work well enough.
The term 'pink' refers to a set of pinking shears, so you'll need a sharp set for this seam finish. But before breaking out the pinking shears, stitch ¼" from the raw edge of the seam allowance. You can use either a simple straight stitch or a zigzag. Now use the pinking shears to trim the excess fabric away. Don't get too close to your line of stitching or you risk cutting your stitching. If you can avoid this particular problem, your stitch and pink seam will hold as well as any other.