There is no "right" steel; it depends on what you want.
A stainless of some kind (there are lots) will not usually rust (some will) but will not normally hold such a good edge - it will blunt more quickly. If you go sea fishing or camp in coastal area I would recomend stainless (others will jump in here I am sure
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For a really good honed and stropped edge that you could shave with I prefer a reasonable carbon steel. It will hold a better edge but, if not treated properly, will rust and will be more brittle so the blade can snap and the edge can chip. A good knife will have a degree of flexibility in the body and a hard edge. This is achieved by choosing the right steel and applying the right heat treatment (tempering and quenching).
having said all that, I do not make as many knives as others on this forum and I am sure one of the pro's will turn up soon to give you advice (and probably correct me!!)