Everyone has to live with some about of stress in their life, it is a fact of life and some of it can benefit us while other forms of stress can be detrimental to individuals both mentally and physically. Telogen Effluvium is one of the effects that can result from extreme stress, basically this is a thinning of a persons hair due to stress. Stress and hair loss don't necessary cause the other to occur. Stress doesn't have a direct result on a persons hair loss.