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Distance is the key fact you have to consider. And you have seen this phenomenon yourself.
I don't know if you live in the city or the country. It would be easier to explain to a person living in the country, Suppose you live near a road (a dirt road). You see the ruts moving away from you. but did you also notice that they seem to come together? The distance between the ruts gets smaller. Now suppose someone comes out to get their mail. They are about 1 1/2 miles away. Don't they look smaller than they really are?
If you live in the city, you can see the same sort of thing, but it's hard to pick an example to use. I'm thinking of something like a flag on a hill that is part of a park. If you move away from both, don't they look smaller?
That's what happens, but instead of miles, you are talking about billions of miles -- sometimes light years (the distance light travels in a year). The stars are so big that even these huge distances do not prevent us from detecting them.