At this point of time, your child is able to pick up words which she hears and learns at school or at home. She begins with listening to stories, reading picture books and gradually reads story books herself.
What you need to know
Reading has just started for your child, so celebrate it. Give her books with simple words to read. Sit with her while she reads her story books. Help her with the words she is unable to read. In spare time, read words from books with meanings to enhance her vocabulary. Make her narrate stories which will let her know the words she lacks in. Nurture her love for books by taking her to a library or a book store.
Motivate her to read more and more books. Use new words in your day to day life, this will make her remember those words. It will gradually become her favorite hobby. It will also strengthen her language skills and creative writing.