Pepe Reina was sent off for violent conduct after headbutting James Perch and Andy Carroll stormed straight down the tunnel after being substituted on his return to Tyneside.
The Scot had no defense for his goalkeeper but insisted that Carroll did not dive early in the first half, and was merely off-balance in the box.
“It started well enough, we passed and moved and looked pretty threatening but it ended up with a lot of frustration and disappointment and frustration and disappointment was a result of the actions that Pepe took, he got a deserved red card," Dalglish told reporters at his post-match press conference.
He continued, “When Andy came off and went up the tunnel he was disappointed with the way the game has gone not necessarily for himself but for the team and the frustration takes him up into the dressing room. We do not have a problem with people showing their desperation and disappointment or frustration but we need to channel it better than we have done."
Dalglish accepted that a penalty shouldn't have been given when Carroll went down under no contact in the ninth minute but thought a booking for the former Newcastle striker was harsh.
He argued, “There are no qualms either about when Andy went down by the goalkeeper. It was not a penalty kick and I also thought that Andy was losing his balance anyway before he reached the goalkeeper and even if he had got past him he would have still fallen over. We don’t have a problem with that but we maybe have a problem with the yellow card because I don’t think he was intentionally trying to get a penalty.”
Goals in each half from Papiss Cisse condemned Liverpool to a defeat that leaves the Merseyside club in eighth place but Dalglish thought his side should have been awarded a spot kick when Danny Simpson handballed.
The Scot was happy with the chances that his side created but bemoaned their lack of composure in front of goal, as the goal-shy Merseysiders again failed to score.
“We should have had a penalty kick in the first half and that would have been them down to ten men but we never got it,” added Dalglish. “Maybe if we shout up louder we might get some refereeing decisions. We will try to remain calm and sort out our own problems to get ourselves back in the way we want to be playing."
Dalglish also called on his players to believe in themseles and take advantage of the opportunities offered to them.
“There are lots of times that they create openings but we’ve got to take them. We have to believe in ourselves and have belief in what we are doing. If we do that then we will have a better opportunity," he explained.