That's pretty much what I do.
Mix ferric chloride 50/50 with water. (by the way, radio shacks will usually order this stuff if you pay for it ahead of time. )
I either sand to 600, or buff, clean with soap and water, then rub down with acetone.
Initial soak the blade for 2-3 min, rub the oxides off with 0000 wool under running water, repeat until you like it. The oxide layer will prevent further etching so make sure you get most of it off before dipping again. You'll be suprised what you will discover under that next layer of oxide. I like to sand with 1500 grit after a few etchings to bring out some underlying features.
The good thing is, if you sand too much off, you can always start over.