Other than a handful of deep sky objects (galaxies, nebulas, star clusters) that can be seen w/ the naked eye, this statement is basically correct. The stars we can see do generally fit inside that circle.
Astronomers define our place in the cosmos Cosmos. As the Milky Way hurtles through space, it doesn't travel alone. It is part of a galactic supercluster which a team of astronomers has just succeeded in mapping. Their map, which graces the cover of Sep