Hi!
Let me get you acquainted with Phals.
Phals usually grow on trees (plants that grow on trees are also known as epiphytes) that are devoid of moss, or have very little of it.
The natural habitat of an evergreen Phal (yes, there are deciduous species of Phalaenopsis, but they're specialty plants that aren't readily available to the general public) are tropical Asian swamp forests. The trees are usually partially submerged in the swamp water.
Sometimes, the trees are near rivers or streams.
Here's a link to a pic of a Phal in the wild:
Photographing phals in situ on Flickr - Photo Sharing!
The person [sarawaklens] who posted this pic has a whole host of pics of Phals in the wild. I highly suggest checking them out to have an understanding of what a wild Phal experiences. I encourage you to think out of the box, I'm not sending you the link to show you pretty pictures.
The temperature range is usually around 60 F to 95 F.
There are seasonal differences in temperature, but they're within the mentioned range.
For example, cooler months would be in the range of 60 F to 80F. Warmer months would probably be around 70F to 95F.
To ensure that the plant is able to flower, make sure there's at least a 10 degree F difference between night and day.
Because they're in tropical swamp forests, make sure the humidity is at least 60%. This will ensure the buds bloom nicely and the plant will grow well.
If the growing area you have the Phal in is rather dry, probably one of the best ways to provide humidity is to get a humidifier. Another way to provide some humidity is to have other plants (preferably other epiphytical plants - it's a hygiene thing) around it. Yet another method would be to use a humidity tray of some sort (it provides limited levels of humidity, but at least it's something).
Bright shade is adequate enough for your Phal. Any brighter and you risk burning the plant. You should get an idea of what the lighting levels are like in the photos. Remember, they grow on trees, the branches and leaves of the trees are providing shade for the orchid.
If you have a light meter, you can more accurately get a reading for the amount of light that's reaching your plant. It's not necessary, but it helps a bit.
Make sure the air circulation is adequate. The room you have your Phal in shouldn't be stuffy and stale.
Under no circumstance should a Phal be exposed to cold drafts or air from the AC.
Notice in the pics of the wild Phals, how they're positioned on the trees.
The crown is perpendicular to the tree trunk or branch, with the leaf tips pointing downwards. Sometimes, they're hanging off the tree trunk or branch pendulously. This growth orientation prevents water from getting trapped in the crown, thus preventing crown rot.
I recommend positioning the plant in as close a manner as what I described and to what you see in the pics.
Next, I want to get you started on the right train of thought regarding plants in general...
Flowers are not the best indicators of plant health. They're the plant's reproductive organs (genitalia).
I suggest that you check out the roots of your Phal (Phal is the actual scientific abbreviation for the genus name Phalaenopsis).
A healthy root will have a shiny white velamen layer of tissue surrounding the green fleshy roots, with a green or reddish brown (or sometimes yellow or orange) growing root tip. Like so:
Orchid roots on Flickr - Photo Sharing!
Pay attention to how the roots are green. The roots are able to photosynthesize. Also notice how in the pics of the Phals in the wild, the roots are exposed. That means they're also exposed to the light.
What this means is that you are able to use a clear plastic pot that allows for you to see the roots, get an idea when the potting media has dried out, and allows for the Phal's roots to photosynthesize.
A clear plastic pot is not mandatory, as the roots will adjust and switch from performing the duties of photosynthesis to something else.
As for what kind of potting medium to use, I recommend either medium or large grade bark. If your growing area is too dry, you may want to use quality long strand sphagnum moss (the ones from New Zealand are good) as top dressing (use it only as top dressing if you have to). Another alternative would be coconut husk chip potting mix.
The pot should only be big enough to fit the root mass comfortably, no larger. Larger pots cause problems by allowing the potting media to stay too wet for much too long (it will drown the roots and cause root rot).
You may allow the buds on your Phal to just fall off on their own. What you're experiencing is most likely what's called bud blast. It is usually caused by some sort of stress.
This is all I can think of at the moment. If there are any questions please don't hesitate to ask. Many people here can help.
I do highly recommend finding a way to post pictures, as that will save a lot of time describing things, and people will be able to accurately diagnose the situation much faster. There are certain problems that can be so similar to each other in appearance or by description, that a photo will make all the difference in knowing what's really going on versus just making an educated guess.