The concept of trading.

First of all let me thank all of you for your insight and advice. I really am trying to grasp this.

From my previous post I think I gained some perspective.
I thought stocks were about finding a collected group of indicators to help you make an educated decision as to where the market will go tomorrow.

What it's starting to sound like now is.. you want to find the average within a stock through a specific time-frame dependent on how long you plan to hold. Once you see that stock knocked out of it's average, it'll help you decide as to buy assuming it will return to it's average, correct?

So here are two photos of the stock Netflix (NFLX). I know these are gonna pretty bad and I'll get criticism but I'm just trying to get the concept.

I set the a simple moving average to 120-period just to even it out and get more of a price average. The first photo shows a 1 day chart. The 2nd photo shows a 90 day chart also with a 120-period simple moving average.

Yeah of course. Is that a correct method for price direction though? Also, if I was correct and netflix was on it's way back down to it's "average". Options let you buy the stock at a fraction of the cost and capitalize more correctly? SO I'd want to do a "put option" here. This is all based on assumptions but I'm just trying to get the concept again.

From the videos I've seen thus far it seems like options are just leverage correct? It's a more sophisticated route for a margin account. So why wouldn't everyone use them?