Engine
The first thing to remember when dealing with any type of smoke for a model train is that an engine has to be equipped with a smoke unit to use the fluid. Not every model train engine has that capability. Make sure your engine has this capability before using any type of smoke fluid (store-bought or homemade). Also, understand that the commercial fluids are designed to be safe and non-hazardous. Homemade fluids don&'t have that guarantee.
Smoke Unit Function
The first step in understanding how to replace commercial smoke fluid is understanding how a smoke unit works. Different ones are likely to have somewhat different configurations (that&'s why there are different smoke fluids), but the basic premise is the same from model to model. Essentially, the smoke unit has a wire that receives electricity from the train set&'s power system. This wire gets hot and the fluid is vaporized by the heat. Technically, it&'s fog rather than smoke.
Hazards
When attempting to create a homemade toy train smoke fluid, keep some safety concerns in mind. First, combustible fluids (lighter fluid or other types of petroleum products, for instance) can be dangerous. They could catch fire, rather than just steam. That can cause damage to your smoker, train or worse. In addition, keep in mind that many household fluids (again, petroleum products or other complex chemical compounds) can create health hazards if inhaled. So, steaming them could cause respiratory problems in people and pets.
Annoyances
There are other potential problems with homemade toy train smoke fluid that don&'t qualify as hazards. Still, they can prove to be enough of an annoyance that you might find yourself wishing you had just bought the commercial fluid. Since (if all goes well) the fluid will be vaporized, any odors associated with the fluid will be airborne. Be mindful of any potential smell you don&'t want permeating the room and lingering.
Bottom Line
There are risks involved with using various household fluids to create your own toy train smoke fluid. Each smoke unit is a little different, and requires a different type of commercial fluid. So, even if you find something that works wonders on one engine, it might cause trouble on another. In the long run, it might be a better investment to just purchase the commercial fluid. When choosing to do it yourself, don&'t rush to try a new fluid. Think out the potential complications first.