After falling short in improved performances against the Sydney Swans and Collingwood, St Kilda held its nerve against a fast-finishing Carlton to win by nine points on Monday night.
Watters said his players were only human to tighten up when a 36-point lead was whittled down to four, but they "went through the fire and still got the result".
"To give the effort and get the reward, I think that's a real catalyst for this group," Watters said post-match.
"A lot of the senior players out there have been leading really strongly for us and for the younger players, that sort of experience for them is invaluable.
"The boys are pretty happy and they should be … you take a lot out of that as a group."
The Saints were again led superbly on Monday night by captain Nick Riewoldt and Watters praised the club's senior stars, with Nick Dal Santo bouncing back after a lean period.
Dal Santo finished with a season-high 26 disposals (11 contested) and Watters said the midfielder had played a selfless role.
"I guess when you're a name player and your form isn’t where it quite needs to be you're under a lot of pressure," Watters said.
"He put some time into (Chris) Judd tonight, he created a lot of two-on-ones with the work he was doing and that freed up a Jack Steven or a Leigh Montagna.
"I thought he was great … he got some reward for effort tonight."
Steven was the Saints' leading ball-winner, finishing with a career-high 39 possessions (19 contested) and nine clearances in the best effort of his 58-game career.
Watters said he had challenged the 23-year-old this week after some inconsistent performances.
"He's had a number of games this year where he's had 19-20 possessions in a half and then tapered off, so that was a focus for him, to really get the job done," he said.
"That's the difference between being a B-grade midfielder and really elevating yourself.
"He's a great kid, Jack."
Watters said his team would take lessons out of the fourth quarter, which saw Carlton go inside 50 on 11 consecutive occasions for five straight goals, trimming the margin to four points 17 minutes into the term.
"Players are human, they can tighten up," he said.
"I thought Ben McEvoy really stepped when he needed to behind the ball; [there were] some strong efforts from him.
"Sam Fisher I thought was really strong in the last four or five minutes."
Nathan Schmook is a reporter for AFL Media. Follow him on Twitter: @AFL_Nathan
