I really think that simply reading TO your DC at this age is the key. If you are already doing this, you may one day be surprised...that your DC is actually following along, not simply listening. Focusing on books that contain quite a few sight words and that are engaging to your DC helps too. DD and DS had different preferences, but the way I started to notice each one could read was WHILE I was reading to them...DS, in particular, started to CORRECT me if I missed something.
When they got started and were a bit reluctant, I would usually tell them to take turns with me or complain that I was loosing my voice and that I needed their help.
