Ranieri's first game in charge was marked with a 5-0 defeat.
The Italian spoke in the press conference after the game and gave an honest assessment of the Hornets' performance against the Reds.
“We know it was difficult match," Ranieri said.
“I think at the beginning we were nervous and we conceded a goal. Some of their goals were our presents.
“This is one of the first problems I told my players because when you do something you have to be compact for this. We were too much spread out and they come very quickly.
“I watched some bad things from our team, but I also watched some good things. For example, the last 20 minutes we played face to face with Liverpool. I asked my players to play face to face from the beginning, but I saw them very nervous. I knew before coming I'd have to work hard and I'm ready to work.
“Now I know much better my players. I met [some of] the players only two days ago. During the last 10 days I watched them during training sessions but, of course, the truth is on the pitch when you play against big teams. I now know them very well.
“The defeats are always difficult but I'm a very positive man and I watched very well my players today. I know where we have to improve and from next week we start to improve.
“I have to tell my players where they make mistakes but always my confidence is very high."
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