This is a simple question but it is being asked as the procedure seems critical. In some of the Lionel literature it implicitly states that if you run the smoke unit dry it will burn out. It also says that adding too much fluid is harmful. So there you are too little and too much are bad. How can you even determine if you are adding too much?
My standard procedure is to add about 6 drops of smoke fluid when the smoke stream starts falling off but I find myself adding fluid every time that I run the trains. I've also seen different smoke fluid "mileage" on different brands. The question of when to add smoke fluid or not seems to put one between "a rock and a hard place" . OK people chime in, and lets have those closely guarded secrets!