Both wrong, use MSI Afterburner to record video, use compression at your own preference (85% is good or whatever), and use Sony Vegas (any recent version) to edit the clips (learn to torrent if you haven't already).
In Afterburner set your FPS to 60 and at 720p resolution, make sure you record in a 16:9 ratio resolution at or above 1280x720, preferably at 720p.
You will most likely not even notice that you are recording, but you'll see a rotating pink circle in upper right hand corner when you are.
Tip* If you have a secondary drive, set the files to record on that one instead of the drive that's currently being read by the game.
I think that's about it, I've been doing this for awhile now so I have a heavy understanding of recording and editing videos, let me know if get stuck.