The Foxes go to Swansea on Saturday after collecting just one point from their last three games in the Barclays Premier League to put the brakes on an impressive start.
Leicester lost 1-0 at Newcastle last week after a 2-0 defeat at Crystal Palace and a 2-2 draw with Burnley and manager Pearson knows they must heed the warnings from their last few outings in order to progress.
"As you find in this division, you have to be in games to give yourselves a chance of winning," he said.
"One of the frustrating things is we were probably in our best spell of the game, in the ascendancy when they scored the goal.
"That is something that is all part of the learning curve.
"You have to learn quickly in this division
You will probably find over the course of the season you tend to get punished for small mistakes.
"But we know that already and Saturday (at Newcastle) was an example of that.
"We talk about that a lot and work at it a lot
Also, when we got into the final third sometimes our quality let us down a bit
That is something we have to continue to work at
Ultimately, players make decisions in match situations.
"They are a fantastic group to work with as people, let alone as players.
"Providing we get the right application I am confident we can continue to improve and we will be competitive."
Riyad Mahrez could return for Leicester at Swansea after he was left out of the Foxes' 1-0 defeat at Newcastle.
Pearson did not want to risk the winger after he only returned from international duty with Algeria 24 hours before the clash with the Magpies.
Pearson has virtually a full-strength side to pick from with only Matt Upson (ankle) and cruciate-knee-ligament-injury victim Zoumana Bakayogo - who was not named in the Foxes' Barclays Premier League squad - out.
Jonjo Shelvey is set to return for Swansea's Barclays Premier League home game with Leicester on Saturday evening.
Shelvey served a one-match ban last weekend for picking up five bookings and England Under-21 international Tom Carroll deputised for him in the controversial 2-1 defeat at Stoke.
Leon Britton (knee), Jordi Amat (knee), Dwight Tiendalli (groin) and Jazz Richards (knee) are still missing as Swansea seek to end a run of five league games without a win.
Garry Monk has admitted to feeling patronised by some of the comments aimed at him as the fall-out from Swansea's controversial defeat at Stoke last weekend shows no sign of ending.
The Football Association contacted Monk on Thursday to "seek his observations" after the Swansea manager claimed Victor Moses cheated by diving to win a penalty for the Stoke equaliser and criticised referee Michael Oliver for making a "disgusting decision" to award the spot-kick.
Monk has until October 27 to reply but says he is happy to provide the FA with his observations and insists he will stand by the comments he made.
Stoke boss Mark Hughes described Monk's post-match comments as "unacceptable" and on Thursday echoed the sentiments of his chairman Peter Coates by welcoming the FA's decision to investigate what he saw as an unnecessary attack on his player.
But Monk, speaking after being contacted by the FA and ahead of Saturday's league game with Leicester, said he would continue to stand up for himself.
At 35 years of age and just eight months into the Swansea job, Monk is the youngest manager in the Premier League and Hughes said the former centre-half would 'learn to bite his lip' as he gains more experience.
Asked if he found such comments patronising, Monk said: "Of course they are, but they are going to be
It (inexperience) will always be thrown at me until - hopefully - I do 10 years in this job.
"It doesn't bother me and it is not my concern what Mark Hughes does or says about me or anything else
I just worry about myself and my team.
"The way Tony Pulis handled the Jerome Thomas incident down here last season (the then Crystal Palace manager fined his player for diving in a game at Swansea) is how I would have handled it myself.
"Mark Hughes chose not to handle it that way and that is his prerogative
It is up to other people to decide if that is the right way to do it, but I have my own views on it.
"Standing up for yourself and being honest is a trait I have, if that disagrees with some people, then so be it."
Source : PA
Source: PA