A magnetoresistive sensor having a magnetically stable free layer fabricated from a material having a positive magnetostriction such as a Co—Fe—B alloy. Although the free layer is fabricated from a material that has a positive magnetostriction, which would ordinarily make the free layer unstable, the magnetization of the free layer remains stable because of an induced magnetic anisotropy that has an easy axis of magnetization oriented parallel to the Air-bearing Surface (ABS). This magnetic anisotropy of the free layer is induced by an anisotropic texturing of the surface of the free layer. The resulting anisotropic surface texture is produced by an ion milling process that utilizes an ion beam directed at an acute angle relative to the normal to the surface of the wafer whereon the sensor is fabricated while the wafer is held on a stationary chuck. This angled, static ion milling produces an anisotropic surface texture, or roughness, of the free layer, which results in the above described magnetic anisotropy with an easy axis of magnetization in a desired orientation.