The Reds were defeated 1-0 at Burnley on the opening day of the Championship season, and were then knocked out of the Carling Cup first round by the League Two side Bradford City.
Forest were beaten in the Championship play-offs last season and Davies has been keen to play down hopes of a repeat push for a top six place, saying he needs more signings.
He also expects the side to move quickly up the table - after Saturday's games they find themselves occupying a relegation position - and victory over Leeds United at the City Ground on Sunday would go some way towards that.
"What you have got to do is keep calm, keep believing in what you are doing and keep encouraging the players to do the right things," he said.
"I've said all along that when you don't create chances and don't come out of games with many positives to look at then you start to concern yourself. I said last year, when we started the season with just one win in eight league games, that we were doing the right things and it was only a matter of time.
"And I'll say the same thing again. With the two performances, we've lost two games that we should have won when you look at the way we played. We've missed a host of chances but there have been lots of positives."