I am not a reading specialist. But, I did enjoy a workshop called Connect which was given by reading specialists. The workshop taught classroom teachers how to use reading recovery techniques in the classroom. We were given many wonderful ideas. Here is a link that gives an overview of Reading Recovery that is very informative.
One of my favorite tips that I have used quite often is the "cut up story" technique. Read about it in the link above.
My reading specialists also suggested using "boo-boo stickers". These are white circle stickers that the students use when they make a mistake. Instead of erasing the word, they cover it up with a "boo-boo sticker". I couldn't find a picture of white stickers, but here is a picture of red ones.
I included this activity in my Reading Tips and Tidbits packet. The activity is called sentence puzzles. You can use it in a small group setting or as a literacy center.
I also like how students are taught to hear sounds in words using boxes. You can read about that in the link above in the "Hearing and Recording Sounds in Words" section. I loved this activity so much I included it in my Word Work for Primary Students packet. I call it "sound boxes". There is also an extension of the activity that can be set up as a literacy center.