Ok, well, this one should be pretty easy to answer.

When I alternate pick, I pull my fingers away from the strings so that they don't hit them. Like the way Paul G. does. It causes a little bit of tension, but only enough to move my fingers. Can I keep doing this without risk of injury or crippling my playing later on or should I try and move my hand so that they don't need to move?
I would say it's probably ok; the key thing is not to have extra tension in your wrist and arm.
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