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I find it very handy, especially for a 3-way connection. It is a little goopy though - have to watch the drips.
Use sparingly. I'm not a big fan of it but it does come in handy for very specific applications. Hard to apply in small amounts for me. I put a drop or two on a plastic piece and then use toothpick to apply from there.
Once mastered on using it I think it works great depending on the use. Some tight spaces really require it.
If you use a good electical tape, Scotch 33 or 88, you can back-roll the tape off the stock roll so that the stick is out. Back-rolling a relatively small amount is much easier to use than the larger roll. Very little of the stick is loss in this process.
I use Liquid Tape, as stated it's very handy in specific situations. Another great use of it is to block the back light from LED's I add to equipment, a fine coating of it is very effective in blanking out any light. I also use the toothpick to apply it in the correct places, the brush in the bottle is much too large for most uses.
I've never used it on the layout but it sees a lot of use on my boat. Great stuff.
I use adhesive lined heat shrink. It seals the connection from moisture etc.
I hit a situation last night. A wire joint became exposed on my MTH Big Boy. It was a tight area. I used a tiny amount of liquid tape. Checked this morning and worked perfect. I put a second coat on to be safe making sure underside I could not see was covered. It does have its uses.
Any time you have a joint already made that need insulation, liquid tape works well. If you splice into a wire, say for a drop from the track, you can't put heatshrink on it unless you cut the main bus, but you can use liquid tape on it.
It is also good at insulating speaker frames near the coil wire to prevent shorts. Several light coats depending on what your are doing works great. G