Not to discount the advice from the more seasoned guys who've responded, but thought I'd throw in another option.
On my mini folders, I stamp in the nail nicks with a homemade chisel/punch.
Advantages:
The ends and corners will be as sharp and crisp as the punch they are made with. This is the main reason I use this method on minis, since the nail nick gets down to hairline width on the ends, and I haven't found any sort of abrasive/cutting tool compatible with my methods that can do that.
You can make your own punch or whatever quickly & easily from some scrap tool steel or broken file, etc.
You can easily make several different sizes and styles without investing much in the tools, allowing you to custom tailor the nail nick to that specific blade, rather than making them all look like the one or two cutting wheels you have on hand.
The low investment is nice if this is just a one-off type project.
I know factories have used this method (Case; not sure who all else), so it's not like you're treading in unexplored waters.
Potential Disadvantages:
If you're more the machinist type, who likes to have everything clamped down, perfectly measured, adjust the setup a couple times before actually cutting steel, etc., this method may require a little bit of practice. (practice on some scrap steel first.) It's easy to let the punch slip a bit, or not be perfectly aligned the way you want, and you only get one chance.
The force may slightly bend/warp your blade. This can be straightened of course, but it requires planning ahead, and perhaps could cause the same mental conflicts as above. (i.e., someone used to only stock removal vs. forging type stuff)
If ya do it too hard, you may actually cut off the steel above the nick. (you're basically a chiseling it, after all.) Might need to leave some extra "meat" over the nail nick before finishing the profile.
May cause stresses in the steel when done cold. Not sure it's worth worrying about considering the types of failures usually seen in traditional folders, depending on the alloy, but it might be worth revisiting what you're doing with thermal treatments before the quench or something.