I'm sorry, but what's 'finger pedaling'
Finger pedaling is to reach down with your fingers to depress the damper padel

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Ok... this is really bad terminology because it does sound like I should be doing that. But that is not what I mean.
I'm not sure that the term 'finger pedaling' is recognised as a proper piano term, so what I say here may not be completely accurate -- if anyone has another way of explaining what finger pedalling is, I would like to know!
I suppose you know more are less what the (damper) pedal does. It basically keeps the dampers off (all) the strings to so that they are able to resonate freely, even if you stop pressing on the key. The inside of the piano is basically an echo chamber, and this effect is amplified by a good sound board.
There are basically two types of finger pedaling. The first is associated with light pedaling. The idea here is to try and keep the legato line. I.e. a continuous flowing of sound through a musical phrase. This is very much in the style of operetic singing and is used mainly for nice lyric and/or melodic lines.
To put it simply, you try and use a fingering such that one sound/note melds into the next without gaps. If you press down the pedal lightly (about 1/4 or 1/2) , and play portato (detached). You hear that before the sound from one of the notes dies down you are already playing the second note.
Now try to create a similar effect without using the pedal. To do so, hold on to one note and play the next note before letting go of the first. You should be playing very legato. This is one form of finger pedaling -- legato fingering and playing.
Having told you about this, I should also for completeness' sake tell you how and when I think (or rather I've heard) you should used either types to pedaling, but I'll leave it for later.
The second form for finger pedaling is to imitate a more heavly depressed pedal say about 3/4 -- fully down. To do so, say you are suppose to play the notes C E G (back to) E C. Again play it portato with the pedal 3/4 depressed and listen to the sound. To create a similar sound without the pedal, play C E G in succession, holding each note down and not letting go, lift and immediately depress E and do the same for C. It sounds like you are using the pedal, when you are actually not.
Now, I suppose there are least four ways of creating resonace that I've mentioned so far. I will also mention when I think they should be used.
Legato fingering and playing or light finger pedaling can be compared with light pedaling. As you have seen so far, many (or most) people consider legato playing an essential skill, and using the pedal to fake, dishonest playing. I agree with this. The main reason for using finger pedalling over the damper padel is that you have much less control over the resonance if you ONLY use the damper padel. Instead, legato playing should be used as far as possible and the the damper padel only to touch up parts or create effects when playing appeggios. If you depress the pedal and play cdefgfedc continously, you will find that you get a legato sound but after a while the sound smudges.
We also have two types of heavier padeling. One with finger pedaling and the other is to depress the pedal 3/4 -- fully. Although at first they sound similar both these create very different effects. This is because although in theory, continiously pressing down on certain notes means that these notes are not damped out -- the key difference is that when you use the pedal, ALL of the notes are not damped, not just the notes you are playing. Remember that I said that your piano is an echo chamber. This means that if you play a note, say c, with your damper pedal down, the echo effect causes all the c's (in all octaves) in your piano to resonate slightly by sympathetic resonance. Essentally, using the pedal gives a bigger sound, as all the strings resonate, whereas using finger pedaling gives a finer sound as only the notes you are playing resonate.
All of these effects are enormously useful in interpreting the music. You can play with combinations of these to create very fine sounds -- to give the impression that you are playing in a large, grand hall or a small, intimate setting. You can make the piano sing.
I think my main problem is that i know more or less how to produce these effects (still need to practice this of course), but don't have a clear aim as to what I should be doing for a piece of music that requires only sparse pedaling. In a sense, pedaling a chopin or schumann piece is more straight forward, as I usually have a better idea the sound I want.

al.