Jurgen Klopp says Liverpool must accept that their unbeaten Premier League run is over and says they deserved to lose to Watford on Saturday.
The Reds suffered a first league loss of the season when they went down 3-0 at Vicarage Road.
An Ismaila Sarr double and a goal from Troy Deeney fired struggling Watford to a shock victory, lifting them out of the English top-flight's relegation zone on goal difference.
Klopp was frustrated by his side's inability to take control of the game against Nigel Pearson's organised team and says they were "not good enough" throughout the 90 minutes.
"They did exactly what they wanted to do, we did not. That's how football works," Klopp said.
"The first half was a tough one, a lot of second balls, running here and there, we had the ball a lot but we didn't come in the right positions to cross, the right positions to finish, against a really good, organised side, with a top set-up for this game.
"You have to accept it, it's not so easy, but it's the proof we were not good enough tonight. It's always very difficult. We have to accept if after. In the game you have to fight. We were 3-0 down but we still tried, there were no silly situations where somebody got frustrated and tried to kick someone.
"If you win good, if you lose, try to do it in the right manner and do it like a man."
Liverpool are still 22 points ahead of defending champions Manchester City, who have played a game less and face Aston Villa in the Carabao Cup final on Sunday.
The Anfield outfit need just four more wins to seal the league title for the first time in 30 years.
Klopp's men are in action on Tuesday when they meet Chelsea in the FA Cup fifth round and return to league duty on Saturday with a home game against Bournemouth.
The Merseyside club then continue their Champions League title defence with a last-16 second-leg clash at home to Atletico Madrid, who beat them 1-0 in the first match earlier this month.