RFID Reader Troubleshooting

I'm using the RFID ID-20 Reader and the a 125kHz RFID tag (http://www.trossenrobotics.com/store/p/3620-Blue-Key-Fob.aspx) and I can't seem to read anything without tapping the tag against the reader. It is very important to my project that I get as much range out of this as possible, so can someone help me out.

I'm using the set-up below without the LEDs or speaker: