The Freudian view is that demons represent repressed infantile sexual feelings, likely incestuous ones toward out parents. For Jungians, they represent a projected negative aspect of the anima or animus, someone whom you perceive as a threat and are attempting, or wish, to avoid, when, in fact, that power or energy is also a part of you.

The monster usually represents the parts of your urges and emotions you have repressed or do not feel in control of. The angers or urges may even feel to us as if they re strong enough to control us, so we represent them as an external force pushing us to some sort of evil. In each of us there is the potential for creativity or destruction. This is especially noticeable in connection with fears, such as fear of illness. Such a fear, if based on imagination rather than a real cause, can still cause illness. In this sense our mind can turn against us. This enemy our undirected fear may be pictured as the devil or an evil entity.