Arduino UNO-R3 + Parallax RFID Read/Write Module

Is there something wrong with the code?

Yes. You should not be diddling with the SoftwareSerial instance's pins.

You should most likely NOT be sending !RW and the other value every pass through loop.

You should be reading the response from the device, each time you send it an instruction.

Where did you get that?

The RFID datasheet.