Reading each word, and reading at the speed of which your child speaks.
Pausing at punctuation.
Using the pictures, word structure, and meaning to help self-monitor errors. Do not immediately correct your child if errors are made, but rather, ask the child if the sentence made sense to him. Have him find and correct the mistake instead.
Recognize the genre of the story (fiction, nonfiction) and tell what makes the story that genre
Recognize high frequency words.
Have your child write a couple sentences about what was read. You can even dictate a couple sentences if you would like. Have your child illustrate the sentences (they love this part!).