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Polishing Old Paint
First clean and clay bar surface to remove dirt and debris. Dry the car off and then masking tape off any areas that might get damaged from the polisher or from wax sticking to it.
There are many different polishing systems but most of them have a course and fine cut polish, a finishing compound, a micro finish and a wax or paint sealer.
Depending on how bad the paint surface is scratched or faded the more of these products you will need to use.
If the finish is badly scratched I would use a fine cut polish, finishing compound and then the micro finish. Once I think it looks good then I would use a hand wax or paint sealer to finish off.
If the finish is in good shape with only fine scratches I would start with the Micro finish compound and then a hand wax or paint sealer.
When polishing with the machine work a small two by two foot area overlapping each stroke in both directions also overlap each patch being careful not to burn right through the paint at the body lines and high spots.
Polishing New Paint
Yes New Paint can need polishing too but not usually for scratches. When a car is painted sometimes dust will land on the wet paint. (These are called dirt nibs). These dirt nibs can be wet sanded off with a very fine sand paper (2000unigrit). Also drips or runs can be sanded and polished out as well as orange peel. This should be done by a professional.