Wireless network runs through a "wireless" router. If you're plugged into the router via ethernet cable, then you're not wireless.
Even with 'secured' wireless traffic, you can still capture the data between points. This data can then be analyzed and decrypted to some extent.
Basically he can sit, pick up packets that travel across the wireless network, and, with enough packets, crack your security key. There isn't a way to prevent this, except not using wireless.
Honestly, I'd say that you really needn't worry about security much, unless you're a company that has Intellectual Property to preserve. Most hackers go after corporations, rather than individuals, and the hackers that are going to pursue individuals will be attacking from the 'outside' (i.e: coming in through your router). Really, unless the neighbor boy wants to torrent and not be noticed, you should be fine.
Now, as far as I know, there are completely silent passive packet sniffers, which can totally intercept any packets inbound and outbound, and you will never know about it, especially if the government or your ISP are involved.
There is only one way to make sure your communications are secure and it's called VPN. Google some VPN providers and they should solve your problem. They are cheap, fast and reliable, so instead of going on a hunt for something you can't be ever 100% certain about, just secure yourself and sleep tight.
I use my ethernet cable when I want to sit near the router, but most of the time I am in the upper floor.
But I can still be tracked if I use cable, after it sends signals out right?
What are the other internet connections options which can not be tracked?
I know I should not worry, but still, I don't want people I know to track or monitor me.
But I think the packet sniffers you are talking about are used inside the network you want to monitor. So it means only if they have the password they can sniff you.
I will look into google VPN
To answer your question. Yes you can be monitored. A program could have a keylogger embedded in it (Trojan) or could download a "bot" which would allow the author complete access to your PC, wired or wireless. It could also at timed intervals, or when asked to, send info somewhere else. These can and do use similar or the same name as valid Windows services. Many trojans have the name of svchost.exe, which Windows runs many of.
A rootkit placed on your PC can do the same thing without being detected, but security software is getting better at this.
If you are using a wired connection, use software which stealths all of your ports and they won't be visible to a drive-by web crawler or spider. Enable your router's firewall. On wireless use the best encryption protocol, I don't remember which it is, WEP, maybe.
You can use an anonymous proxy server too so if someone searched for you, it may appear you are in, say, Adelaide AU when you are not.
Don't allow people access your PC if you think they might monitor your activities.
Basically though someone would have to go to some effort to monitor another's PC. The casual (and friendly) user generally can't/won't do this type of illegal activity.
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