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Reading led the game from the thirteenth minute thanks to a Jamie Cureton penalty but two goals in the space of nine minutes late on gave the Sky Blues a dramatic victory.
Following the game Watson told readingfc.co.uk: "We feel we've been mugged a little bit. Although they had a lot of possession they didn't really hurt us but managed to pop up with two goals when we didn't expect it.
"We gave away a free-kick in a dangerous position for the first goal, you can't do that with these fellas because they'll punish you.
"These teams get one and aren't sitting back - they're looking for a win. You've got to give them credit because they pushed on and got that second goal.
"We've come a long way from last year, at times on Saturday we passed the ball around well. We tried not to concede again but it was difficult because they were pushing for the win. It was a right kick in the teeth, I think their lad Bothroyd came on and made a big difference to their play."