Sequence learning is fundamental to a wide range of cognitive functions. Explaining how sequences--and the relations between the elements they comprise--are learned is a fundamental challenge to cognitive science. However, although hundreds of articles addressing this question are published each year, the actual learning mechanisms involved in the learning of sequences are rarely investigated. We present three experiments that seek to examine these mechanisms during a typing task. Experiments 1 and 2 tested learning during typing single letters on each trial. Experiment 3 tested for "chunking" of these letters into "words." The results of these experiments were used to examine the mechanisms that could best account for them, with a focus on two particular proposals: statistical transitional probability learning and discriminative error-driven learning. Experiments 1 and 2 showed that error-driven learning was a better predictor of response latencies than either n-gram frequencies or transitional probabilities. No evidence for chunking was found in Experiment 3, probably due to interspersing visual cues with the motor response. In addition, learning occurred across a greater distance in Experiment 1 than Experiment 2, suggesting that the greater predictability that comes with increased structure leads to greater learnability. These results shed new light on the mechanism responsible for sequence learning. Despite the widely held assumption that transitional probability learning is essential to this process, the present results suggest instead that the sequences are learned through a process of discriminative learning, involving prediction and feedback from prediction error.