Without pictures showing what is bent it's impossible to give good advice. That said, I've fixed a good many loaders over the years. First thing you need to decide is how good do you want it when done. Fixing a loader well is usually a significant job, but certainly doable. If all you want is for the bucket to be flat on the floor again then either of your plans should work fine. If you want to get it back to factory specs then it will take more in most times.
One basic to remember is that the best way to straighten something is to reverse the force that bent it. If your loader had been bent digging dirt then either of your plans would be ok to start with. But since it was likely bent from hitting something while moving, then the propper way to straighten it will be to pull it in reverse of the impact direction. I have chained the loader yo a tree and pulled back to accomplish this before.
Now if you really want to get it right you will need to do some carefull measuring to see just where it's bent. You will likely find a good many parts that are not quite right and will need to be put back in place.
There are many ways to apply the force needed to get things straight, but without a good idea what is bent any suggestions in that reguard would be nothing more than guesses.
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Today's Featured Article - Hydraulics - Cylinder Anatomy - by Curtis von Fange. Let’s make one more addition to our series on hydraulics. I’ve noticed a few questions in the comment section that could pertain to hydraulic cylinders so I thought we could take a short look at this real workhorse of the circuit. Cylinders are the reason for the hydraulic circuit. They take the fluid power delivered from the pump and magically change it into mechanical power. There are many types of cylinders that one might run across on a farm scenario. Each one could take a chapter in
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