I bought a yellow-tail damsel as my first fish ever because I understood them to be a nice first fish, and actually, I have to agree. It is a nice, active, pretty little fish. I also understood it to be the least aggressive of that genera, which may be true (I don't know), but it's still an agressively territorial creature. I found this out when I tried to add a perc. clown a couple days ago. Any time the clown entered the damsels percieved territory, it flared it fins and batted the clown away with it's tail. It never hurts the clown, but it still asserts itself strongly. I tried rearranging the rocks a bit to "confuse" the damsel, but that really didn't work since the entire tank (29 gal.) is it's territory. So after I cleaned up that mess, I just sort of hoped for the best. Since then the damsel has at least learned to tollerate the clown and leaves it alone as long as it stays in the left tenth of the tank. The clown seems ok, but I still feel sorry for it being a prisoner in such a small space.
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Honda TLR200
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Honda TLR200