The teenager has made eight starts and six substitute appearances in the English second tier so far this season and can see clear benefits of getting to grips with the rigours of League football.
"Playing in the Championship makes you push yourself more, rather than playing in the Reserves," Watt told Arsenal.com. "You're playing against men and it's all about the three points.
"I'm enjoying it up here, they are treating me like family and giving me a lot of confidence.
"We're a tight-knit bunch and we spend a lot of time together off the pitch. Simon Grayson is like one of the lads.
"The fans are incredible and even in our team talks we talk about the fans and it gives you a lot of confidence knowing they are behind you."