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Creating "Let's play" videos?

Hi, I know this topic may have been beaten to death already but I wanted to know how to create "let's play" videos for games on my Android phone. The most common suggestion I can find on stackoverflow was AndroidScreencast.

However, that app has very poor framerates for it to be usable on a gameplay video. On YouTube, I can find some demos of games where there is an indicator where the screen is currently being touched (usually marked by gray circles). How do I do something like that?
 
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