Is your child currently learning phonics? That helps to build up a foundation in reading as they will learn how to put the different phonetic sounds together and form words. Alternatively you can also use flashcards to go through individual words with him. I paste word cards around my son's room to get him to remember how to read the words. Expose him to words rather than just stories.
This is a very good post with a lot of tips to encourage your child to read. A few tips include asking questions when reading the book with your child to get him to speak out more, and pointing out letters e.g. getting him to spell out words. http://www.icanteachmychild.com/10-steps-to-teaching-your-child-to-read/
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From my experience as soon as your done reading the book ask the student to tell you what took place in the story. Try to get them to indicate sight words, another way. Leapfrog is also another great learning book
thanks