Quique Sanchez Flores is staying positive despite Watford losing 2-1 to Crystal Palace in the FA Cup semi-final on Sunday.
The Hornets didn't make the best of starts to the game at Wembley, falling behind to a Yannick Bolasie header inside six minutes.
But they rallied in the second half, with captain Troy Deeney scoring the equaliser before Connor Wickham put the Eagles back ahead and ultimately through to the final in May.
Doubts still remain over the future of Flores as Watford head coach, but the Spaniard remained in an optimistic mood after the defeat.
"The players feel positive," he said. "Everyone is disappointed but we need to be realistic. No one expected us to be in the semi-final.
"When we started the season the main target was to stay in the Premier League. That's the most important thing for Watford.
"We need reasons to be happy, to be positive. I don't see why we have to be negative. We were competitive and created chances. But we did not expect to concede with the first play.
"But Crystal Palace have a great team and a great manager, and congratulations to them."