Some Forex traders, particularly those who are just starting out and don't want to close their trades, use buy-and-hold strategies. However, although these types of strategies can work outside the Forex market, they don't really work inside it.
A buy-and-hold strategy is used to hold onto losing trades, in the hope of them coming up in value eventually in the long run. This is logical; if a trade is losing, you hold onto it until it becomes profitable. However, if the currency market really worked like this, everyone would be rich because no one would ever lose.
Buy-and-hold strategies are used a lot in real estate. The economies of developed countries usually go through boom-and-bust cycles, where the prices of assets can rise and fall cyclically. Those who invest in real estate usually see through bad economic times and wait them out until the economy resumes to normal, where they can then sell the assets or at least just feel happier about them, knowing that they are once again worth something significant - but currencies don't work like this.
The prices of currencies tend to trend strongly in particular directions; their values typically trend in one direction in the long run. This is exactly why buy-and-hold strategies don't work particularly well in the market for currencies. By holding onto a losing trade, your losses will simply build up and up. If you'd applied leverage to a losing trade, you would eventually meet your Forex broker's maintenance margin and end up having to cut your losses the hard way. This can lead Forex traders to go completely out of business.
In the FX market, it's best to cut your losses when you can and not let them run; let your profits run but not your losses. Good money management and implementation of good money management techniques can help to avoid your losses from running. You should have a good Forex trading plan and you should follow it, if you want to avoid your losses from building up and up.
It's best to use a proper Forex trading strategy in conjunction with good trading tactics; this way you stand a much greater chance of profiting in the Forex market. Beginners especially need to understand that currency trading is not about winning with every single trade and that losses are inevitable. You just need to focus on maximizing the amount of profitable trades you get and minimizing the amount of losing trades you get. Never hold onto losing trades as they will most likely bring you huge losses in the future which will be difficult for you to afford, especially if you traded on margin.
In conclusion, buy-and-hold strategies do not generally work in the market for currencies. Whilst they might work outside of the Forex market, they don't really work inside it. It would be a far better idea to manage your money properly and cut your losses by placing stop-loss orders and by using other important money management techniques. You should devise a Forex trading plan and follow it; this way you will be able to stay disciplined with your trading and consistent, helping you to take more profits. A losing trade is losing, so you should get rid of it and move on; look for more potentially profitable opportunities in the markets - there are many.