I'm gona preach a little, so bear with me. If you ever intend to sell your knives, please do yourself a favor and use at least your name. I can't count the number of people who have come to my shop with a knife that only had initials, or some obscure "logo" on it, asking me to help them find the maker so they could order another knife. Tracking down a maker by initials or a logo is impossible (unless its a long time/well known maker). A name will at least give someone a starting point to find you... Something they can type into an internet search engine.
OK, preaching done.
On the etching.....I have the best success with "wiping" action. I tape the stencil in place, give a spritz of windex, moisten the pad with etching solution, and then do about 10 "wipes" each direction on AC, then about 10 wipes both directions on DC to draken. The windex solved all my issues with marks "bleeding" or "frosting" around the edges.