The Reds managed to drag themselves out of the relegation zone and enjoyed a six-match winning spree before it ended this week.
The former Fulham boss argues that Liverpool are still working hard to climb up the Premier League table and their performance at the Britannia Stadium was just a glitch.
He told reporters: "I don't get euphoric when we play well against Chelsea and I certainly won't become anything other than realistic and determined to move on to the next step when we lose a game.
"I don't see why it should give us enormous reason to doubt what we are doing or doubt what we are capable of doing.
"I don't expect this result to dent confidence any more than any bad result does or any end to a good run dents your confidence.
"We are talking about two or three games in a season. I find it hard to have to explain that every time you win a game things are flying forward and when you get a bad result they are flying backwards.
"I'm a 38-to-55-game-a-season man and I make my judgment over that period."
Hodgson also said that too big conclusions were being drawn and that the Reds are being realistic.
He added: "We know we've still got some work to do, get some players back to fitness and work at our game.
"All you can do is work but unfortunately we won't have a lot of chance to work as some players are going away with their national team.
"The longer we work together the more the players become attuned to what we want from them.
"I don't think I need to fear one setback in six is going to throw us back into a bad situation."The Reds struggled against Stoke, failing to control the game, and their misery culminated in Lucas Leiva being sent off for a second offence.
Hodgson acknowledged the team’s struggle for creativity.
He said: "I was disappointed with the lack of creativity for large periods but to do that we needed a bit more from our front players
"Most of the time the creativity comes on those occasions you get the ball down and play some football but for a lot of time it was in the air or being kicked out and then you have to deal with the re-start which ensues.
"We have had some good performances, it is the first game we have lost in six so I think that is pretty consistent."