It depends. Of course, I can only give my perspective on how I handle it, and how I think other people handle it.
Some people play solely based on instinct and reactions, and there are characters where this is possible and can even work to a certain point.
Personally, I feel that most (maybe 95%) of the top players plan for all their matches. Coming up with a proper strategy is preparing for a character. Coming up with a strategy, depends on your own characters tools - how you do it is up to you. Basically what I do is:
1) Look at my character. I try to determine what kind of character I'm playing in relation to theirs. Do they have to deal with my stuff (ie, can I do whatever they want)? Is there something they have that prevents me from following my normal gameplan? A character like Bang, Tao or Arakune are able to just play for a majority of their matchups (up to a certain level), a character like Jin, Litchi or Hakumen may not have this luxury.
2) If they do have something that gives you problems, examine their character. Play first to find out exactly what's giving you trouble, then go to training mode to try to figure it out (or test with someone). If it's hitbox, test to see if you have a move that wins. If it's oki, test to see if there are answers.
3) Apply! What strategy does is give you a plan for the character. If the other player doesn't know the answers, you should just be able to win. If someone do have answers, you'll be playing the player, as well as the character (that's what makes the game fun).
It's not like chess, where you have to sit around and think for a move. Once you plan for a matchup properly, you'll recognize the situations you've planned for and act accordingly. As far as "predicting" what moves of yours should hit, you shouldn't need to. You should be able to hitconfirm, or create a string that makes it easy to hitconfirm your single move. For example, with Litchi, her 3C[m] is only jump cancellable on hit, not block, so i always buffer airdash (for 3C > JB > 2C > ItsuuA, etc). On whiff, obviously nothing happens, on block, Itsuucan/ItsuuC/ItsuuB.
I don't mind if other people post answers as long as they legitimately know what they are talking about. If it's a question pertaining to perspective (like the one I just answered), I think it's fine if anyone answers, because it's more of an opinion.
5A, real anti-airs. Really hard to win air to air.
I'm surprised you didn't ask how do you beat Litchi jA, lol.