Speaking after his side's 2-0 defeat at home to relegated Greuther Furth, Labbadia expressed his disappointment at a problem he says has been "dragging on all season", and which must be eradicated if they are to end the campaign on a high.
"We started the game perfectly, we were aggressive and won a lot of possession, leaving Furth hardly any air to breath, and we played football," he said.
"All that we failed to do, and this has been dragging on all season, was create chances once again.
"We need to be cooler when things get hectic."
Furth coach Frank Kramer acknowledged his side were only still in the match at half-time as a result of Stuttgart's profligacy.
"We didn't have a chance in the first half," he said. "We simply could not get into the game.
"All we were able to do was prevent them from scoring. We lacked courage and we were lucky to be 0-0 at half time.
"We then made a few changes and showed a different face in the second half."
The win - Furth's fourth of the season - lifted them to within nine points of safety, although with only two games of the season remaining, they are now only playing for pride.