Open the recording you want to edit within the Camtasia Studio editor.
From the icons below the Clipbin, either select Cursor effects or click onto More then Cursor effects.
If you encounter the below message you will need to click onto a track below. Typically this will be the track with your video content.
Once you have selected the appropriate track you will be given the following screen.
Now add the desired effect to your cursor, you have to select a cursor effect before you are given options to customise the effect. After you have selected the desired options click onto "Add Animation" which will add it to the track.
The below image shows what a track looks like when a cursor effect has been applied to it.
Add any other desired effects or edits to the recording then produce the recording. Instructions for producing a recording can be found at: Producing a camtasia recording.