The Ewood Park side have lost their last three Premiership matches since their 2-0 away win over Aston Villa. A slump that has seen them slide to the edge of the bottom three.
Stead is aware of the club's current predicament, but says the team's attitude is spot-on and that everybody is focused on the task in hand.
Rovers suffered relegation at the end of the 1999 season, but returned to England's top-flight after a two-year absence.
"It is looking a bit grim," explained Stead. "Although the defeat to Leeds was very disappointing, we have all got belief in what we can do and we know we can pull ourselves out of this.
"But it is hard to say what is going wrong, in particular at home. I don't know why that is. Things are just not going for us, yet the attitude of the lads is first class.
"Everybody is wanting to do well and work hard, but now we have to really concentrate and work on pulling ourselves out of it.
"We just have to really go for it now and I am sure the players will. We have to find it within ourselves. All the lads know it has to come from within."
