I've read about renormalization of $\phi^4$ theory, ie. $\mathcal{L}=\frac{1}{2}\partial_\mu\phi\partial^\mu\phi-m^2\phi^2-\frac{\lambda}{4!}\phi^4\,,$ particularly from Ryder's book. But I am confused about something:
Ryder begins by calculating the two point Green's function $G(x,y)$ to order $O(\lambda^2)$ (ie. the first order correction to the free propagator). Now if we take $\lambda$ to be small then this should be a good approximation, but $G(x,y)$ diverges, so he regularizes it by imposing a momentum cut-off $\Lambda$, and then makes $m$ a function of $\Lambda\,,$ ie. $m=m(\Lambda)\,.$ Then he goes on to to the same for the four point Green's function, and finds that $\lambda$ is also a function of the cut-off, ie. $\lambda=\lambda(\Lambda)\,.$ But at this point $\lambda(\Lambda)$ is no longer small when $\Lambda$ is large (in particular $\lambda\to\infty$ as $\Lambda\to\infty$), so what makes the perturbation series valid? How can we ignore the $O(\lambda^2)$ terms? I've read things like "renormalized up to 1 loop", but what about all the other loops, are they small? Or am I misunderstanding what's going on?
Perhaps it is like this: When we calculate the two point Green function G(x,y) after making a momentum cut-off at some large $\Lambda>\Lambda_0\,,$ where $\Lambda_0$ is larger than the momentum we are conducting the experiment at, we find that the mass has shifted to the physical mass $m_P=m+\lambda m^{(1)}(\Lambda_0)+O(\lambda^2)\,,$ where $m^{(1)}(\Lambda)$ is a first order correction term. Now we have a second equation for $\lambda$ given by some function $\lambda(\Lambda)$ that goes to infinity as $\Lambda\to\infty\,,$ but $\lambda(\Lambda_0)<1\,.$ Then we can ignore the $O(\lambda^2)$ term and just say $m_P=m+\lambda m^{(1)}(\Lambda_0)\,.$ Now since low energy physics should be independent of energy scale and $\Lambda_0$ is already large, we assume $m_P$ has the same form at all energy scales $\Lambda$ and this defines $m$ a functions of $\Lambda\,,$ so $m_P=m(\Lambda)+\lambda(\Lambda)m^{(1)}(\Lambda)\,,$ and then for every calculation we make to order one in $\lambda$ we substitute in this formula for $m_P$ take $\Lambda\to\infty$ and calculate the results. Now technically a better approximation to $m_P$ at the cut-off point is $m_P=m+\lambda m^{(1)}(\Lambda_0)+\lambda^2 m^{(2)}(\Lambda_0)\,,$ and so if we want a better result we should set $m_P=m(\Lambda)+\lambda(\Lambda) m^{(1)}(\Lambda)+\lambda^2(\Lambda) m^{(2)}(\Lambda)$ and do the same thing. Is it something like this?