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Sit at the piano or keyboard with your music in front of you. Make sure your posture is good, and the music is positioned so that it's not a strain to read it. Take a look at the notes and rhythms, and try to understand the piece a little bit before actually playing any part of it.
At the very beginning stages, it's helpful to practice the rhythm before you add in the melody. Tap your foot, or use a metronome, and clap out the rhythmic values. Maintain good sight-reading discipline, and don't stop if you make a mistake.
You should be able to internalize rhythmic reading relatively quickly. Once you are beyond the very basic stages, it's better to integrate both rhythm and melody at the same time.
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Make note of the details. Look at the key signature, any changes of clefs, and the dynamics of the piece. If you can, look for chords, and determine what they are.
Look for the trickiest part of the piece, for example, sixteenth notes (semi quavers), or a place with a lot of accidentals that are difficult to digest, and determine a speed at which you think you can play even the trickiest parts. It is very important to not stop and restart when you make a mistake: just keep playing.
Look for patterns while you are playing, and always try to read a minimum of one measure ahead.
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Play the piece. After reading through the exercise, it's time to make some noise. Count out the tempo out loud, and make sure you are counting slow enough so that you can realistically play all the notes.
You may miss a couple, notes, but it's more important that you keep your tempo accurate.
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Keep practicing in this manner as often as you can. Feel free to go back and study the pieces you played in more depth. The more you practice, the better your sight reading skills will become.