Pearson left feeling so frustrated
City fought back to gain a 2-2 draw in the League One clash at the Walkers Stadium, but the manager was far from happy.
He said: "Two points lost, definitely. It was a frustrating night for us. We allowed them two bad goals.
"When you score two goals at home it should be enough, but it wasn't."
Pearson added: "Although there are positives in that we twice rallied from behind and did create some chances, it wasn't to be and it is disappointing to drop points at home."
The defence had been so good in previous games this season and Pearson, himself a defender in his playing days, could not have been happy.
But he said: "Players will make mistakes. We have to show a determination and resilience to bounce back from them.
"We got punished, that's football, and it is not a case of being negative about it.
"We got something out of the game. I felt we should have won, but at least the players stayed positive."
Having done so well in away matches, City were looking forward to this week with two home games in a row.
But the Saddlers served up a reminder of how Millwall upset City at the Walkers Stadium earlier in the season.
Pearson said: "We have just got to stay focused. The opposition again came with everyone behind the ball.
"We have got to be patient enough to unlock the door, but it is definitely not a case of feeling sorry for ourselves.
"We have lost only one league game so far and there were some odd results on the night, so it is what we do over the course of the season. It is two points dropped, we lost two bad goals. We could have played better but it is all behind us now. We have to look to Saturday (against Northampton) and make sure we do enough to win that one."
Pearson had to re-organise his defence after the two Walsall goals, when Kerrea Gilbert went off injured.
That paved the way for Patrick Kisnorbo to make another appearance from the bench. And fellow defender Joe Mattock, another long-term injury victim, also went on as a substitute.
Gilbert's progress following his muscle strain will be monitored, but Pearson now knows he has more options at the back.
That may soon be the case in attack as well. Paul Dickov is not far away from returning to the squad as City aim to get back to winning ways again as soon as possible.
Andy King heads home CIty's equaliser

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