Brighton sit 12th in the Premier League with 12 points from ten games after promotion from the Championship last season.
They have settled into life in the top flight nicely and head to Swansea this Saturday on the back of a three-game unbeaten run.
However, Hughton said: "I'm very conscious of making sure everyone around here is very level headed about what we've done. At this moment, we haven't done anything and the points difference between us and third from bottom is only four.
"That can change within a two game period but I have to be pleased. We are a newly promoted side and to be where we are after ten games, you have to be pleased with it.
"At this moment, we haven't been embarrassed in any game. The two games, at Arsenal and here against Man City, were also important for us. Although we lost both of those games,
we've seen how City have been this season and what they can do to teams, so there are a few factors that have lifted the players' confidence at this level.
"We've got good players and if we play at a level, then we have a chance of getting results.
"We're very conscious you can have a bad run without playing badly but I think the confidence levels come very much from what they've done so far."