Steam and Extrenal HDD question

Steam will only download (and install) to the program directory. So, either reinstall steam to the new external HDD, or rename the current steam directory, mount the external HDD as the old path of the steam directory, then move all the content back.
 
Bear in mind that Steam runs the games from that directory, so you're going to need USB3 or eSATA to get reasonable performance.
 
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