As the artwork implies, this card is excellent for countering an Exodia Deck, by taking one of their "Exodia" pieces and preventing them from fulfilling the win condition.
If you know your opponent has a powerful card in their hand, use this to take it.
If you know your opponent has a powerful card still in their Deck, use "Dark Designator" to bring it to their hand before using this card.
For this reason, this card can be a good choice to include in a Side Deck.
It can also be a good choice to include in a side deck for mirror matches. For example: if you need a card that they added to their hand or you know is in their hand
Use when you only have one card in your hand aside from this card. You can take your opponent's best card, but your opponent is stuck taking the only card left in your hand.
Before playing this card, Set every card in your hand that could be potentially useful to your opponent so that they don't get anything useful. Try to leave them with a card that is specific to your deck (e.g. "Power Capsule").
Any card that allows you to see your opponent's hand before using this card will help in deciding when to activate it.
Consider this card in place of "Mind Crush"; although your opponent will not lose hand advantage, it allows you to both see your opponent's hand and take away a potentially dangerous card.
Use this card in a Spirit monster deck; even if your opponent summons one of your stronger Spirit monsters, it will return to your hand at the end of the turn, effectively giving you a two-card advantage (the Spirit monster and the card you took from their hand) in exchange for only one (this card that you had to draw).