Davies has won seven points from three matches, one of the victories being a 6-1 hammering of Huddersfield, since being appointed for a second spell in charge at the beginning of this month.
Forest are now just four points shy of the play-off places in the npower Championship with 12 games to go, but the Scot is keeping his feet on the ground.
"We are pleased with the start we have made and we are pleased with the response we have had from the players," Davies said after seeing his side win 2-0 at Charlton on Saturday.
"But I have been too long in this game to know that a couple of wins or a couple of losses can send you in both directions.
"We will not get carried away. There is still a lot of hard work to do. I want to assess a lot of things at this club and that will happen in the coming weeks.
"But we will keep working hard. We know where we are, we know what we have to do and with 12 games to go, we will do the best we can."