McDermott said that his side's inability to hold onto a lead was one of the most disappointing things about the defeat for him.
"We're hurting. We are very much hurting at this moment in time," he said.
"It was disappointing today to say the least. It was rough. When we got 1-0 up I though we were ready to kick on. We didn't do that and that's cost us.
"We were disappointed with both goals. We've got ourselves into the lead and they've scored virtually straight after. We have to hold our hands up. We need to be better and see the game out. I know that and the players know that."
Things don't get any easier for Reading as they face Manchester United and Arsenal in their next two matches.