I use a Work Sharp flat grinder to grind my mower blades. It's slower rotation speed doesn't get the blades hot (grinding with a high speed grinder will form the edge, but you will find that the heat removes much of the temper, and the blade will dull faster after the sharping).
Work Sharp WS2000 Tool Sharpener - Amazon.com
I start by cleaning the blade with a wire brush, then dressing (light grind) the back side of the blade for a flat reference point. (The edge of the blade is referenced from the flat, back side).
I then remove the nick's from each edge so I have a fairly flat edge to reference from and try to remove the same amount from both sides so that the width of the blade is the same on both sides.
I grind at an approximate 30 deg. angle (whatever was on the blade to start with) I leave a flat edge on the blade of 1/16" (per blade spec.) Any sharper and it gets too thin and the edge will nick or chip faster.
After sharping, I use a wall-mounted balancer (the kind with ball bearings and magnets) to check and correct the balance. (Ebay, used).
Balancing is important as any imbalance will shorten the life of the lower spindle bearings or lower engine bearings. (And it makes for a smoother running mower or mower deck as well).
If I need to remove material to get a blade to balance, I extend the sharpened edge length-wise by 1/16" increments from one or the other side, until the blade is back in balance. (I try to maintain the same front-to-back width of the blade on both sides for dynamic balance. Extending the sharpened edge length-wise doesn't change the dynamic balance.)
The problem of using a nail is, they don't work with blades with a star-center hole, some blades have no center hole and even with a standard center hole, the nail never really gets positioned at the center of gravity of the blade properly.
I recommend that you do balance after every sharping and to use a small, cheap cone-type balancer. Should only cost $5 and more accurate than a simple nail as it will center the blades center hole better.