Palace enjoyed the most possession and chances in the League Cup clash but fell to the Hornets despite a confident display.
They were undone by a late Ashley Fletcher winner, and Ward told Palace TV he feels a little more ruthlessness could have secured a victory.
“I think it was a game that was there for us to go and win,” he said. “And if you look at the chances we created, the control which we had in the game, especially the first-half, I think we could have put it to bed in that period alone. So it’s gutting and it’s disappointing to walk away and walk off this pitch without a win.