After spending many hours online last night, I came to realize something that it seems most people don't know about, so I figured I'd help out!
If you want to block attacks, so that you don't let your opponents build AP, or get combo'd into oblivion, you need to press L1.
When you press L1, you are safe from everything except for supers, grabs and a select few unblockable attacks (Spike stuff).
While you're holding block, you can also take this opportunity to roll closer or away from your opponent.
Press attack buttons RIGHT after getting hit is usually not a good idea.