Hello. I have been playing guitar for well over a year now and really want to iron out my bad habits. My pinky rests on the pick guard and I do exert a fair amount of pressure through it.

I really want to start playing with my palm of my hand as a rest with no anchors but feel like my arm is not in a comfortable position, feels too pulled back and unnatural. Then when I try resting on my palm I tend to mute a few strings.

Any insght into where to rest my hand?
Unless you want to mute strings you shouldn't rest your palm on the bridge. Maybe try playing with your pinky curled like you're making a fist? it's not how I pick, but it works for others. I always have my pinky stretched out and it does rest on the guitar body, but I don't put any pressure on it at all. If that feels good to you, just try taking the pressure off the pinky and just let it sit there. Anchoring is only bad if you're applying pressure. Touching the guitar is not anchoring.
If it causes tension, limits your range of motion, or if you need your hand fixed to the guitar in order to play well, it's anchoring. You need to find a position that is comfortable and also avoids all the issues of anchoring. As JW said, just touching the guitar is not anchoring. That's unavoidable. There's not really a whole lot we can say to help. Everyone's picking position is different. You need to find what works for you.
Quote by Geldin
Junior's usually at least a little terse, but he knows his stuff. I've always read his posts in a grouchy grandfather voice, a grouchy grandfather with a huge stiffy for alternate picking.
Besides that, he's right this time. As usual.