Insert Effects not working for tracking

I upgraded to Cubase 6. I am trying to track and add reverb as I track–not print it. I just want to be able to hear reverb when I am tracking. But I don’t hear anything. I hear it when I play the track back. Is this the way it is supposed to work? I swear I didn’t have this problem with Cubase 5.

Switch off direct monitoring

OK, that makes sense. Thanks for the reply!