The term means 'evil spirit' in Greek (kakos daimon) and was the name given by some medieval astrologers to the twelfth house of the horoscope figure. The inference that the twelfth house rules evil things, or the demonic element of the personality, is rejected by modern astrologers.
The ancients also named Cacodemon an evil spirit who possessed an extraordinary shape-shifting ability, and for that reason was never known by which guise it would appear to mortal men. In medieval times 'cacodeamon' was used as well to describe a nightmare. In modern psychology, cacodemonia (or cacodemomania) is a form of insanity in which the patient believes that they are possessed by an evil spirit.
Cacodemons were also believed to be the hostile natured personal genies, Agathodemons being the friendly natured personal genies (the ancients believed that each person had a good and a bad genius or genii, attached to them since birth and capable of giving impulses, acting as a sort of messenger between us mortals and the gods).
Enochian magic cites 1024 greater cacodaemons and a lot more smaller demons, the simplest entities who actually do the dirty work of creating the universe.
According to some sources, the first known usage of the word cacodemon dates to 1398, in Shakespeare's Richard III Act 1 Scene 3, where Queen Margaret calls Richard a "cacodemon" for his foul deeds and manipulations. But the idea of cacodemons and agathodemons is immemorial; as mentioned above, Egyptians, Greeks, Romans and other ancient cultures believed that daemons were divided into good and evil categories: agathodaemons and cacodaemons, respectively.
Agathodaemons resembled the modern idea of the guardian angel. They watched over ordinary mortals to help keep them out of trouble. Cacodaemons, in the other hand, were malignant spirits that could influence and also possess humans for nefarious purposes.
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Sources: (1) Dictionary of the Occult, Caxton Publishing; (2) Spence, Lewis, An Encyclopedia of Occultism, Carol Publishing Group; (3) Masello, Robert, Fallen Angels. . . and Spirits of the Dark, The Berkley Publishing Group; (4) Rose, Carol, Giants, Monsters, and Dragons: An Encyclopedia of Folklore, Legend, and Myth, W. W. Norton & Company; (5) van der Toorn, Karel (editor), Dictionary of Deities and Demons in the Bible, Wm. B. Eerdmans Publishing Company.
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