Brian McDermott's side made an encouraging start to the campaign, but three defeats in their last four Sky Bet Championship matches have seen them slip to 13th place in the table.
When asked what was missing from Leeds' recent performances, Smith said: "Maybe a little bit of luck.
"Certainly in the two 1-0 defeats (to QPR and Reading) off set-plays, especially the bit of a sucker-punch against Reading. To have thought we might have wrapped it up in the last minute and for them to go down the other end and score, that was a big blow.
"But I've said all along I think we're going in the right direction.
"We're a very close-knit team, all work for one another - in or out of the team the lads are wanting the other lads to do well - and there's a lot of quality in the squad.
"I certainly think if you put our team on paper, there's no reason why we shouldn't be competing right at the top of the table if you look at the lads we've got in there.
"Even looking at those who aren't even involved, there's some top quality players there.
"I'm sure things will turn for the good and we'll keep going."