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I currently have a domain with a website, but if i get another domain without web space and link the new domain to my existing web space does this affect SEO ? will i get traffic to my new domain ? (I am doing it this way to save money because there is plenty of space on my current web host)
Search engines should still be able to find your new domain. The only issue might be what any visitors who see it is actually hosted somewhere else might think of that. I know sites where this was done that can be located without problems. You might want to double check with your hosting provider to make sure that there will be no issues however.
im gonna use masked domain forwarding so they wont see the real place its hosted under.
so it will be ok for SEO purposes because there are so many domains hosted on the same shared server anyway ?
As long as your site contains the keywords you need indexed by the search engines, you should be OK.