Quique Sanchez Flores admits his Watford side are struggling with "insecurities" that can only be cured by winning games.
Wolves' win over Flores' side on Saturday left the Hornets as the only Premier League team without a win this season and the manager accepts they must address that quickly.
"We need to win. We have insecurities, we have situations we can't solve, easy mistakes giving opportunities to the opponent," he said, having presided over a creditable draw with Arsenal but also an 8-0 loss to Manchester City in his other league games since returning to the club.
"All these kinds of things happen when things are a little bit down, but we are working on the situation, we're working to change. I trust this squad of players and they can change the situation.
"When you win it's completely different and you can understand everything very quickly. It's a process and I hope between all of us we can find solutions."
Wolves' win, thanks to Matt Doherty's opener and Daryl Janmaat's own goal, lifted them out of the bottom three and gave a much-needed boost to a league campaign which has been hampered by their Europa League commitments.
The club's first European campaign for 39 years began back in July with the qualifying rounds and Wanderers have reached the group stage of the competition but Nuno admits they have had no time to work on their game in training as a result.
Wolves travel to Turkey this week to face Besiktas on Thursday and then face a tough trip to the Etihad Stadium to play champions Manchester City three days later.
Nuno said: "We have to grow and improve when we are on the field, we don't have time to on the training ground.
"We are recovering and playing so you have to do other things to improve your performance. This is a new thing for a lot of the players.
"Other things? You have to travel, I don't know how many miles, you have to be ready to train after you play because you have a game two days after, it's very tough.
"Big teams do it, we are doing this now and we want to embrace it. We are doing well and all the squad is ready to go. It's tough, it's difficult."