Domain Forwarding Vs. Domain Parking

I am moving content from old.domain to new.domain

However I am at the same time retaining the old.domain to keep the older links working

I want that the old.domain/link redirect to new.domain/link

Please advice what would be best to do for the old.domain -

1) Domain forwarding
2) Domain parking

or Both the above

(The other thing is that I would like to do 301 redirect - would this happen automatically by activating the above options - or something else has to be done)