Miss O absolutely loves to trace. And she loves dry erase pens. Several months ago I printed and laminated a set of letters from a Tot Pack made by Carisa. When Miss O started getting interested in tracing, I remembered the letters, and realized that they are just about perfect for tracing.
Each letter has a little monkey on it, and it helps Miss O know that the letter is faced in the right direction because if it isn't, then the monkey will not be facing right side up. I don't know if Carisa planned them this way, but I love the self correcting feature of these cards. Because the font is more of an outline, Miss O traces straight down the middle, using the outlines to guide her. Usually I put a little dot where she is supposed to start the letter too, so that she learns to write them with good form as well.
I purchased the wall chart at the dollar spot (can you believe it? These same charts are around $15 at the teacher supply!), and I add letter cards to it as we go through the letters in her Go For the Code Primer. About once a week, I take them down and put them in a workbox with a dry erase pen. Miss O LOVES this activity, and this is only one use for these very versatile cards!