Pull it in just a little. Not all the way. Maybe use just one finger. 'Bout half way in. I'm sure you don't need to do it until you have a better understanding of your bike and your power train. I use it sometimes to build RPMs or downshift. Best used on the track.
"slipping the clutch" means just what it sounds like - letting the clutch slip by keeping the lever at the point where it is not exactly engaged, and not disengaged. It's how (in limited form, if you're doing it correctly) you pull away smoothly in first from a stop. Also used to wheelie. If you slip the clutch too much, you'll wear out the clutch components prematurely.
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