Video lags within editing software?

The video on which i am editing lags when i'm trying to edit it within the software (camtasia) after the video is published it runs smoothly as you can see on my YouTube channel (latest video). However i asked a few friends and they suggested it's because i have a slow computer and therefore the editing software lags. I was wondering if anybody has come across the same problem and new how to solve it other than getting a new computer and spending lots of money. Hope you guys can help because it is limiting me and becoming frustrating when it comes to editing, Hope you can help? thankyou
I use Cyberlink Powerdirector 11 and I have a pretty expensive computer with upgraded graphics card and it still lags at times. It tends to be worse when I add a lot of effects, transitions, etc. Also, one way I make it run faster is by downgrading the preview quality to high instead of HD. I guess you need a beast of a computer to have smooth playback in the program. My computer always warns me that a lot of memory is being used by PD11.
 
Laggy previews are pretty normal on fast PC's as well :p

Looking up program specific tutorials on how to reduce preview lag is probably a good place to start.
 
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