DS6 started recognizing sight words before 2 and knew all his letters and sounds before 2 -- we had alphabet letters and magnets, but didn't do anything very taxing; he just kind of knew them one day. We didn't keep leveled readers because I didn't find them particularly stimulating, so he mainly learned from all the picture books we had around -- I'm a picture book fanatic
. I did eventually spring for a really cheap Dora phonics set (he was a Dora nut) when he was about 2.5, but it was kind of a waste -- he was through them before he was 3!
When he was that age, he had a few books that really piqued his reading curiosity; "Freight Train" was one, "Elmer," "Chicka-Chicka Boom Boom," "Good Night Mooon." And he had a "Construction Trucks A-Z" book that really did it for him. Word books, like the Richard Scarry ones, were also *very* popular at our house.
Since I worked and went to school when he was that age, we didn't read particularly a lot at home; he was at daycare for most of the day, but we did read religiously before bed. He started to get "quiet reading time" before bed just before he turned 3, and he studied those books for at least an hour every night before he went to sleep.
By 3.25 or so he could easily read a Frog and Toad independently, and was reading picture books like the dickens. My "lightbulb moment" was when he was about 3.5 -- we arrived at a Target store and I said, "We're at Target!" using the "French" pronunciation, "tar-jhey." Ds said, "No, Mama, that says "targeT!" -- emphasizing the T. At that point I started to dabble on gifted boards.
He started to read Captain Underpants books silently when he was 4.25, and that's when I realized that maybe this was a more than a little unusual! He was evaluated at a local university for an enrichment program and scored at a mid-second grade level at 4y7m -- 99 percentile compared to mid-year kindergartners. He started K reading Beverly Cleary books. When fully tested in K, his grade equivalent was mid-fifth grade.
Nowadays, ds-almost-7 is more into Calvin and Hobbes and non-fiction than he is into novels. If there's no other option, though, he'll blow through a kid's novel in less than an hour -- he read the first 6 books in "A Series of Unfortunate Events" in less than an hour and a half each. He read "How to Steal a Dog" at a weekend work event for me in about an hour.
I like reading all these stories -- it's fun to stroll down memory lane! And I agree with the others; kids who read very early are almost always GT; kids who are GT don't always read early.