It's also a strategy I'm using right now and also one of the most basic strategies to deal with losses. However there are otherwise ways to cope with the occurrence of a big/significant decline ie make it an opportunity to buy and a chance to earn even greater profits.
Yes holding is a good option for long term investors, but I think that it is the best option for those people who do not have experience in day trading. I think that they have good option to hold and remain calm and wait for some time, or tell the price increase too much and give them a good profit.