I'm looking at using a domain name that i registered 2-3 months ago. So far it hasnt been hosted anywhere. Its currently not even indexed. If it suddenly received large amounts of traffic - would it be penalised at all. Natural links of course, not link farms etc. Your thoughts please. Thanks
Traffic does not dictate search results, search engines can only monitor traffic that comes from their actual index.
I'm in agreement with ssandecki here. You have a new site with a new domain here (or at least the potential for a new site). As long as you're not gaming the system you'll be fine. Good luck with your site.
Only problem you might face is at your host on shared hosting and expecting a traffic spike? Thats when suddenly the host cant provide the service that they oversell and give you a suprise.
Actually, that never happens. The host company usually over sells but use their TOS and policies to break that promise, it's rather sad.
I always ignore the unlimited anything because i know its not practical and even the ones who do set a limit for the benefit of getting you to sign up are still madly overselling.