If I let my neighbor share my WiFi, can they see my network traffic?

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I have a business and I have WLAN connection. A lot of times I see my neighbor sitting near our building on the rock wall with his computer.... surfing. My guess is that he is using a wireless connection and fishing off my WLAN. I use a wireless and want to continue doing so but would like for him not to be able to connect and receive free internet from my business. What can I do to keep using my business base computer and also my wireless at the same time and not let the neighbor in? Thanks

Worst Case: They enter your router through the network, jus typing http://192.168.x.x etc & they chance the router pwd!!! lo! and u r denied acces to your own router!!!
wifi sucks, but then are there such hacker so easily avaiable??? guess not, a normal web encription, checked in 2-3 days, chance pwd as oftena as possible & its relatively safe...
i mean relatively!!!
NetStubler... well hats off... any wifi is crackable...
tc.

you are all paranoid schizotypal disordered people!
Most of what you say is true in theory but practically most people wont have to worry-because your average neighbor doesn't have any idea how to hack into a network nor has the time. Its like saying not door lock is secure-with the right tools it can be picked-do you go to sleep everything night thinking about that?

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