Reading will hope to get a better result against Sheffield Wednesday next Tuesday and the Royals number four is certainly confident that they can do just that.
Watson told BBC Radio Berkshire Sport: "I think we did well today, the boys passed the ball about well and we looked confident.
"We were really disappointed when we went behind because we put so much into the game. Whilst 3-0 looks a bad result the viewing public will know that we did well today.
"Derby are supposed to be a top team - the manager told us that in the dressing room after the game. They are favourites to go straight back up, the Rams have a good ground and a strong following.
"I feel that we can take heart from our performance today, and we'll learn from our mistakes.
"The support today was excellent. The Reading fans were amazing - they really made a difference."