How do you Optimize websites and Page Loading?

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I want my webpages light and to load faster. I also want my site/ host to be the most efficient. So I want to design my site in a way that i use minimum amount of images and also image sizes to be as small as possible.

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1. Can you guide me how you implement this in your website?
2. How do you manage large traffic peaks/ volumes at particular time of the day?
3. How do you calculate the peak traffic bandwidth requirements (to select an appropriate hosting plan?
4. Does caching help? and how?
5. which plugins do you recommend? and for what functionality/purpose?
6. is there a way images can be automatically resized according to the device used to browse the website?
7. 7. any other tips? will be more than welcome.

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