We are working on sight words with Blueberry. Hands-on activities help keep her engaged more than tracing, though she is getting better at tracing. She likes to copy the words from the word cards with the magnet letters.
To make the most of your magnet board (or refrigerator) use magnetic photo pockets or print word cards on magnetic paper. I found both on Amazon.com. There are many places to find printable word cards and you may have some already.
I bought the ones in the photo pockets in this picture. The Two Letter Tulips are from File Folder Fun. The wooden letters are Melissa an Doug.
I am not sponsored by any of the above sites but I may get a small donation if you click and purchase from the Amazon links.