DD is in Y1. She is currently reading "turquoise" (level 7) books. I realise that this means she is reading above average for this stage of Y1, but nothing exceptional.
However ... DD is in the top reading group in her class which consists (DD's information) of DD, one other child reading turquoise books, one child reading orange (level 6) and one child reading green (level 5).
When DS was in Y1 (at the same school) he was reading at a similar level but was nowhere near the top reading group level (6 children). He spent a lot of time moaning to himself that he was not very good at reading. However, he also spent a lot of time trying to be as good as the children above him which I think did encourage him.
On the flip side, DD is currently preening herself because she is the "best" reader in the class.
I do encourage both DC to not worry about everyone else :) but concentrate on what they are doing. However, I can't help wondering whether DD being in a peer group that is working at a overall lower level will have a negative impact on her. Partly because I half wonder if this is due to the teaching that this group of children has had, but also because I worry DD will stop trying because she thinks she is already doing better than anyone else.