way too young for time outs. She has zero impulse control at this age, I also don't think she is able to have much empathy yet either, so while its a good idea to show her that Daddy was hurt, I don't think she'll really "get it" at this age. Best thing to do is to redirect. Figure out "why" she is pinching, is it for attention? "Ouch! Pinching hurts, if you want my attention why don't you pat my arm?" Show her how to pat your arm then start playing with her. Is it a need to practice her fine motor skills? "Ouch! Pinching hurts. Lets go play with some playdough."
Oh, and please IGNORE anyone who tells you to pinch her back, that just shows her that you are bigger and can do things to hurt her, but she can't do it to anyone else. Then what happens when she is bigger than someone?? Like a sibling or friend?
My son likes to hit, if its for attention we start playing "high five!". I also give him lots of opportunities to hit things, we have a drum, we hit pillows while listening to music, etc.