In this paper, a self-consistent Monte Carlo simulation method including charge exchange and elastic scattering is developed, and the method is used to calculate the energy and angle distributions of ions, the density distributions of ions and electron in hollow-cathode sheath of a DC argon gas discharge for the different discharge conditions. Cross sections of the charge exchange and the momentum transfer that depend on the ion energy are taken into account precisely. It is found that, as the ions move towards the cathode, the high energy portions of ion energy distributions are enhanced gradually and the small angle portions of the angle distribution increase. A strong field accelerates the ions to higher speed and ensures more ions to move along the lines of force.