Glenn Murray continued his fine form with two more goals for the Eagles but an injury-time strike from Billy Sharp earned Forest a 2-2 draw with Alex McLeish in charge for the first time.
"I thought for 75% of the game we were a very good side and the lads are gutted because, like me, they feel we could have won the game," Holloway said.
"The lads are getting used to the way I want them to play and if we keep playing like we did for long periods of this game we will do very well.
"Today we got ourselves into a situation to win the match and we've ended up with one point instead of three - and that's frustrating.
"I was very proud of them, their work ethic was excellent and they played some exceptional football - as did Forest - in atrocious conditions.
"But at times, particularly at the end of the first half, we dropped deep and it cost us the first equaliser. Having said that I have to give credit to the strike from Andy Reid. He's got himself fit and he's a good player."
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